China plans to raise RQFII quota by 200b yuan (2)

Regarding the QFII program, Guo said it could also be expanded once the current quota is exhausted.

"We've already reached agreement with the central bank and the SAFE. If the US$80 billion gets used up, we will definitely expand it," Guo said.

The CSRC sets an overall quota for the QFII program and approves foreign institutions as QFIIs, while the SAFE grants quotas to individual institutions. The SAFE has so far granted about US$30 billion, meaning that about US$50 billion in additional quotas could still be granted under the existing quota.

Guo also said that certain individual QFIIs will see their quotas raised. QFII quotas are currently capped at US$1 billion per institution.

"We'll look at individual institutions on a differentiated basis. For very big institutional investors, in the past we allowed them to invest at most US$1 billion. Now we'll expand the limit to US$2 billion, US$3 billion, even US$5 billion," he said.

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