Foreign funds 'to flock in'

Easing of curbs on overseas investors will help facilitate more capital flows

Foreign investors are expected to increase their fund allocation in China's A-share market as the new rules for the Qualified Foreign Institutional Investor and the RMB Qualified Foreign Institutional Investor programs will liberalize capital flows and improve forex risk controls.

Foreign funds totaling $600 billion to $700 billion are estimated to be injected into the A share market within two to three years after China eases restrictions on QFII and RQFII programs," said Thomas Fang, head of China equities at UBS AG.