Latest News:  
Beijing   Cloudy    2 / -5   City Forecast

People's Daily Online>>China Business

China's securities regulator to speed up QFII approval


10:21, December 17, 2011

BEIJING, Dec. 16 (Xinhua) -- China's securities regulator said Friday it will speed up the approval of Qualified Foreign Institutional Investors (QFII) to allow more foreign capital into the country's securities markets.

Authorities made the decision because of a recent decline in yuan funds stemming from foreign exchanges and subsiding pressure on the international balance of payments, said an official with the China Securities Regulatory Commission (CSRC) on condition of anonymity.

The country has been worried about excessive foreign capital inflow as it leads to an increase in liquidity and ups inflationary pressure, but the trend seems to have reversed in recent months.

China's total yuan funds outstanding for foreign exchanges decreased by 24.9 billion yuan (about 3.8 billion U.S. dollars) from September to 25.5 trillion yuan at the end of October, the first month-on-month drop in nearly four years, central bank data shows.

The CSRC official said QFIIs' past market behaviors in China showed they are long-term investors, adding that foreign institutions have kept applying for QFII qualification and shown continuous enthusiasm for China's A-share market.

The value of stocks held by QFIIs accounted for 1.07 percent of the total market value of stocks in circulation as of Dec. 2, the official said.

Chinese shares had fallen for six consecutive trading days before rallying 2.01 percent on Friday, following CSRC Chairman Guo Shuqing's suggestion that China's 2-trillion-yuan pension fund and 200-million-yuan housing fund could be invested in the stock market.

China has so far approved 125 QFIIs from 20 countries and regions, with 106 of them being granted a total investment quota of 21.14 billion U.S. dollars, according to the CSRC official.

The total assets of QFIIs amounted to 265.5 billion yuan as of Dec. 2, with bank deposits, stocks and bonds accounting for 12.2 percent, 71.9 percent and 13 percent of the total respectively.

We Recommend


Leave your comment0 comments

  1. Name


Selections for you

  1. Nearly 9 years on, US withdraws from Iraq

  2. 1st twin giraffes celebrate birthday

  3. Scuba divers welcome bowmouth guitarfish at aquarium in Hungary

  4. Consumers throng to shops for coming Christmas in Rio

Most Popular


  1. Risks behind India's military buildup
  2. 2011: Year of government micro-blogs
  3. Chance of RMB devaluation small
  4. Narrow vision limits China's discourse power
  5. Dubai chasing Singapore's strictness with violations
  6. Too early to loosen China's property controls
  7. Do not let disputes taint Sino-Korean ties
  8. The natural way to pick your stocks
  9. China must retain its strengths as it goes global
  10. Canada's short-sighted move should be denounced

What's happening in China

2nd Airbus A380 arrives in Beijing

  1. Property prices in big cities declining
  2. More Chinese cities see housing price decline
  3. Drought snags shipping on rivers in S China
  4. Gas explosion kills 9 in central China coal mine
  5. Beijing reaches annual "blue sky days" target

PD Online Data

  1. Yangge in Shaanxi
  2. Gaoqiao in Northern China
  3. The drum dance in Ansai
  4. Shehuo in Baoji City
  5. The dragon dance