China is mulling over whether to allow individuals to make direct
investments in overseas assets, the foreign exchange regulator disclosed last
"More channels will be open to individuals to make overseas investment as the
State Administration of Foreign Exchange (SAFE) raised the annual quota for
individuals buying foreign currency from US$20,000 to US$50,000 last year," said
Hu Xiaolian, director of SAFE.
The administration will soon increase the total investment quota for
qualified foreign institutional investors (QFII) as the current investment sum
is only US$50 million short of the US$10 billion-limit, she said.
She gave no indication of the new quota figure, only saying that it should be
in line with a balanced international payment.
Currently, Chinese individuals can only buy investment products provided by
banks and fund management companies if they want to invest abroad under a
qualified domestic institutional investor (QDII) scheme.
Hu said the product scope would be broadened this year to meet customer
She also disclosed that the authority was researching the arbitrage system
between the A-share and H-share markets, but a timetable had yet to be set due
to its complexity.
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