CHINA boosted the quotas it gives foreign institutions to invest in domestic securities by the largest amount in the third quarter since the final quarter of 2012 and regulators may also raise the limit on a parallel yuan-denominated program.

    China accelerated quotas awarded under the Qualified Foreign Institutional Investor (QFII) program as the quarter progressed, adding US$2.5 billion in September, according to State Administration of Foreign Exchange (SAFE) data released Friday. The total outstanding quota is now US$62.2 billion.

    Regulators gave the largest award of the month to the Hong Kong Monetary Authority, adding US$1 billion to take its quota to US$2.5 billion.

    China is also considering raising quotas for foreign investors under the separate Renminbi Qualified Foreign Institutional Investor (RQFII) program as Hong Kong-based investors have almost exhausted their allocations, Guo Song, the head of the SAFE’s capital account department, said Thursday.

    Launched in 2011, the RQFII program allows financial institutions to use offshore yuan to invest in the mainland’s securities markets, including stocks, bonds and money market instruments.

    Under the program, regulators have granted a quota of 270 billion yuan (US$44 billion) to Hong Kong, 50 billion yuan to Singapore, 80 billion yuan to London and 80 billion yuan to Paris. (SD-Agencies)