China announces cancellation of quota limit for foreign institutional investors

　　China News Agency, Beijing, May 7 (Reporter Wei Xi) The People's Bank of China and the State Administration of Foreign Exchange announced on the 7th that they will abolish quota limits for foreign institutional investors and promote the further opening of China's financial market.

　　The "Regulations on the Management of Domestic Securities and Futures Investment Funds of Overseas Institutional Investors" issued on the same day clearly abolish the requirements for the management of domestic securities investment quotas for qualified foreign institutional investors (QFII) and RMB qualified foreign institutional investors (RQFII), The remittance and exchange of funds are subject to registration management.

　　At the same time, the implementation of integrated management of local and foreign currencies allows qualified investors to independently choose the currency and timing of remitted funds. Significantly simplify the procedures for remittance of domestic securities investment income of qualified investors; remove the limitation on the number of custodians, allow a single qualified investor to entrust multiple domestic custodians, and implement the main reporter system.

　　The Central Bank and the State Administration of Foreign Exchange also emphasized that it is necessary to improve the foreign exchange risk and investment risk management requirements of qualified investors' domestic securities investment, and strengthen the supervision after the event.

　　In response to the details of this new regulation, the central bank further answered that for qualified investors who originally only had QFII or RQFII qualifications, the original QFII custodian or the original RQFII main reporter was the main reporter by default, and there was no need to re-register. In addition, qualified investors should adjust their foreign exchange derivative positions within five working days at the beginning of each natural month, based on the latest scale of RMB assets corresponding to their domestic securities investments at the end of the previous month. (Finish)