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在线翻译:
szdaily -> Important news -> 
CHINA SCRAPS FOREIGN INVESTMENT LIMIT IN STOCK, BOND MARKETS
    2019-09-11  08:53    Shenzhen Daily

CHINA removed one more hurdle for foreign investment into its capital markets almost 20 years after it first allowed access.

Global funds no longer need approvals to apply for quotas to buy Chinese stocks and bonds, the State Administration of Foreign Exchange (SAFE) said in a statement yesterday. It removed the US$300 billion overall cap on overseas purchases of the assets, about two-thirds of which remain unused.

It’s the latest push by Chinese authorities to increase use of the yuan in international transactions, and comes as they seek out more foreign capital to balance payments. Scrapping the investment quota is also another step in policymakers’ efforts to open up China’s financial system to the world.

It’s unclear how much fresh investment the latest moves will attract into China’s US$13 trillion bond and US$6.9 trillion equity markets, given that foreign investors had only used US$111 billion of the US$300 billion quota available to them through Aug. 30. There are also alternate routes of investment, including trading links with Hong Kong Exchanges & Clearing Ltd., that allow offshore money managers to trade stocks and bonds on the Chinese mainland via the special administrative region.

Foreign investors held 2 trillion yuan (US$286 billion) of Chinese bonds and 1.6 trillion yuan of stocks onshore by June, according to central bank data.

The process of granting overseas investors similar ease of access as local players started in 2000, when China was negotiating entry into the World Trade Organization.

China began easing rules last year, when it removed lock-in periods and allowed investors who used the quotas to repatriate their money at any time. There had previously been limits on the amount foreigners could take out of the country in one go.

Separately, the country has allowed foreign banks and insurers to take controlling stakes in their local ventures. UBS Group AG, JPMorgan Chase & Co. and Nomura Holdings Inc. have all won approval for majority control of their local securities joint ventures, while Goldman Sachs Group Inc. and DBS Group Holdings Ltd. have applications pending.

Under the changes to the Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII) programs, foreigners need only to register before investing in Chinese securities, a move that will “make China’s bond and equity markets better and more widely accepted by international markets,” according to SAFE’s statement.

The regulator also reaffirmed its determination to further open the market and make cross-border financing easier.

Implemented in 2002, the QFII program grants licensed overseas investors access to China’s yuan-based capital market.

Established in 2011, the RQFII program allows foreign investors to use offshore yuan deposits to invest in the Chinese mainland.

(SD-Agencies)

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