China RQFII quota expansion to bolster stock market: experts (2)

"The entry of RQFII capital into the A-share market will help balance the market's supply and demand and form a rock bottom in the A-share market," Li said.

Chen Li, analyst with the UBS Securities, agreed, saying that the entry of overseas capital into the A-share market will help improve market sentiment in the short term.

The RQFII mechanism was launched in December 2011 to widen investment channels for overseas yuan funds on the Chinese mainland. It allows qualified investors to invest yuan-based funds raised in Hong Kong in the mainland securities market within a permitted quota.

We recommend:
A Decade of Fastest Development	Eastern Boom Lightens Western Gloom	Oct. data released, inflation slows
Gold collection issued to mark 'Year of Snake'	China: A Fast-growing Force in IPR	13th Int'l Automobile Industry Exhibition
China Int'l Industry Fair opens in Shanghai	Caofeidian coal wharf put into use	Canton Fair wraps up on Sunday