HK hails expansion of RQFII scheme (2)

"More offshore investors are expected to benefit from the RQFII scheme with the new revisions, which show that the Chinese government has become more liberalized in its stance toward overseas investors' access to the domestic market," said Standard Chartered's Liu.

"This would help broaden investment channels in Hong Kong's offshore yuan market, as the revisions could serve as an incentive to pull yuan out of the domestic market," Frances Cheung, a Hong Kong-based senior strategist with Credit Agricole CIB, told the Global Times Thursday.

"With the enlarged quota for bond investments, overseas investors are likely to be inspired to pour into the domestic bond market, especially for bonds issued in the interbank market," Cheung said, noting that the domestic bond market currently accounts for only a small part of inward offshore yuan investment.