SHANGHAI Nov 13 China granted a record $2.8
billion in quotas to overseas investors in October, stepping up
efforts to open its capital markets amid slowing fund inflows.
The country's foreign exchange regulator said it awarded a
combined $1.3 billion in additional quotas to the Government of
Singapore Investment Corp and Temasek Fullerton Alpha
Investments, highlighting its recent push to boost investment
from sovereign wealth funds.
It handed out new and additional quotas to seven other
institutions including Barclays Bank Plc and JPMorgan
Chase & Co, according to a statement published on its
website on Tuesday.
In total, quotas worth $2.75 billion were granted last month
to invest in China's stock and bond markets under the Qualified
Foreign Institutional Investor (QFII) scheme, the biggest for
any single month and almost matching the total given during the
China's top securities regulator Guo Shuqing said on Sunday
Beijing will lift the QFII investment ceiling if its current,
80 billion yuan ($12.84 billion) limit is reached. As of
end-October, 192 QFIIs have been awarded $33.6 billion in
Guo also said it plans to nearly triple the quota under the
Renminbi Qualified Foreign Institutional Investor (RQFII)
scheme, which allows overseas investors to buy Chinese
securities using offshore yuan, to 200 billion yuan.
China has been actively promoting the QFII scheme in recent
months, including holding investor presentations overseas, as
fund inflows have slowed partly due to concerns over health of
China launched QFII in 2003 as part of efforts to attract
foreign investment and reform its capital markets.
China's stock markets have underperformed much of the rest
of Asia for several years running on cooling economic growth and
a raft of government measures to curb the red-hot property
The Shanghai Composite index has lost 7 percent so
far this year after dropping more than 20 percent in 2011 and
around 15 percent in 2010. By comparison, the MSCI index of Asia
Pacific stocks ex Japan has risen more than 12
percet so far this year.