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QFII quotas hit monthly record with US$2.75b October grants
By Feng Jianmin |
November 14, 2012, Wednesday
|
Print Edition
Print Edition
CHINA granted US$2.75 billion in quotas - a single-month record - to foreign investors in October and another 9 billion yuan (US$1.4 billion) quota to offshore yuan investors.
Seven overseas financial institutions received new or additional quotas last month to invest on the Chinese mainland's stock and bond markets under the Qualified Foreign Institutional Investor program, the State Administration of Foreign Exchange said in a statement yesterday.
The US$2.75 billion quota was the largest monthly reward since the program was launched in 2003 and was nearly the total given during the third quarter of this year.
Nearly half of the October quota was given to the Government of Singapore Investment Corp and Temasek Fullerton Alpha Investments, highlighting China's recent push to boost investment from sovereign wealth funds.
Separately, authorities granted 9 billion yuan in October for Hong Kong-based institutions to use the yuan they raised offshore to buy mainland securities under the Renminbi Qualified Foreign Institutional Investor program, the forex administrator said.
That compared with 2 billion yuan in September and the 5 billion yuan quota given in August.
"The China Securities Regulatory Commission has recently speeded up approval of foreign investment quotas to attract long-term investors," said Chen Li, a chief analyst with UBS Securities.
Chen said the actual investment through the QFII and RQFII programs now amounts to about 300 billion yuan, accounting for less than 4 percent of the market size of the mainland's capital market.
He said China has room to expand the amount of foreign investment fourfold, but the process may take another 15-20 years.
By the end of October, 192 foreign institutions had been awarded a combined US$33.6 billion in quotas, less than half of the US$80 billion ceiling of the QFII program, data released by SAFE showed.
A total of 21 institutions received 48 billion yuan in quotas under the RQFII program, leaving 22 billion yuan available quota unclaimed.
Guo Shuqing, head of the China Securities Regulatory Commission, said on Sunday that China may "soon" nearly quadruple the RQFII quota from the current 70 billion yuan to 270 billion yuan.
Seven overseas financial institutions received new or additional quotas last month to invest on the Chinese mainland's stock and bond markets under the Qualified Foreign Institutional Investor program, the State Administration of Foreign Exchange said in a statement yesterday.
The US$2.75 billion quota was the largest monthly reward since the program was launched in 2003 and was nearly the total given during the third quarter of this year.
Nearly half of the October quota was given to the Government of Singapore Investment Corp and Temasek Fullerton Alpha Investments, highlighting China's recent push to boost investment from sovereign wealth funds.
Separately, authorities granted 9 billion yuan in October for Hong Kong-based institutions to use the yuan they raised offshore to buy mainland securities under the Renminbi Qualified Foreign Institutional Investor program, the forex administrator said.
That compared with 2 billion yuan in September and the 5 billion yuan quota given in August.
"The China Securities Regulatory Commission has recently speeded up approval of foreign investment quotas to attract long-term investors," said Chen Li, a chief analyst with UBS Securities.
Chen said the actual investment through the QFII and RQFII programs now amounts to about 300 billion yuan, accounting for less than 4 percent of the market size of the mainland's capital market.
He said China has room to expand the amount of foreign investment fourfold, but the process may take another 15-20 years.
By the end of October, 192 foreign institutions had been awarded a combined US$33.6 billion in quotas, less than half of the US$80 billion ceiling of the QFII program, data released by SAFE showed.
A total of 21 institutions received 48 billion yuan in quotas under the RQFII program, leaving 22 billion yuan available quota unclaimed.
Guo Shuqing, head of the China Securities Regulatory Commission, said on Sunday that China may "soon" nearly quadruple the RQFII quota from the current 70 billion yuan to 270 billion yuan.
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