China FX regulator says has not asked institutions to defer new QDII products

BEIJING (Reuters) - China’s foreign exchange regulator said it has not asked institutions to defer the launch of new products under the Qualified Domestic Institutional Investor (QDII) program, according to a post on its official microblog on Monday.

The statement follows a report by financial magazine Caixin on Saturday that quoted unidentified sources from fund companies as saying the State Administration of Foreign Exchange (SAFE) asked institutions to temporarily suspend new products under the QDII and the Qualified Domestic Investment Enterprise (QDIE) programs.

Last week Reuters reported that several domestic funds had been asked to postpone issuing new outbound investment products. However, that report cited a request by the country’s securities regulator, the China Securities Regulatory Commission (CSRC).

The Institute of International Finance says China saw capital outflows of $676 billion in 2015, when market turbulence set in and the economy grew at its weakest pace in a quarter of a century.

Reporting By Beijing Monitoring Desk and Sue-Lin Wong; Editing by Sam Holmes and Clarence Fernandez