Removal of quota limits good news for A shares

The recent removal of quota limits for foreign investors announced by China's foreign exchange regulator will help foster a long-term bullish A-share market, experts said.

The State Administration of Foreign Exchange announced on Tuesday in a statement the cancellation of the maximum investment amount for foreign institutions investing in the onshore markets under two major schemes - the Qualified Foreign Institutional Investor scheme and the RMB Qualified Foreign Institutional Investor scheme.

Li Lifeng, chief strategist of Sinolink Securities, said that the forex regulator's latest announced policy before the National Day holiday which starts on Oct 1, has reinforced the country's resolution to further open up its financial market, which will provide a strong impetus for the rebound of the A-share market.