Capital market deregulation gathers speed

QFII, RQFII schemes combined to expand foreign investment scope

China took further steps to deregulate its capital markets on Thursday after the China Securities Regulatory Commission decided to combine two inbound investment schemes and broaden their investment scope to include derivatives, bond repurchases and private funds.

The move, which comes close on the heels of Yi Huiman, the former chairman of the Industrial and Commercial Bank of China Ltd, taking the helm at CSRC, will integrate regulations for the qualified foreign institutional investor (QFII) and renminbi qualified foreign institutional investor (RQFII) schemes and enable investments in products like stocks listed on the National Equities Exchange and Quotations and will allow them to participate in margin trading.