Government in no rush to raise QFII funds
(Shenzhen Daily)Updated: 2007-06-18 08:52 The government is unlikely to move quickly to raise the amount of foreign institutional investment in its securities markets to US$30 billion, an official of the State Administration of Foreign Exchange said Friday.
"There hasn't been a final decision on expanding the qualified foreign institutional investor (QFII) quota to US$30 billion," Guo Song, a director at the capital markets division of the State Administration of Foreign Exchange's capital account management department, said.
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Foreign institutions invest in China's securities markets under the qualified foreign institutional investor program.
The combined investment quota for institutions in the program is US$10 billion, but that ceiling has almost been reached. China agreed in principle at trade talks with the United States last month to raise it to US$30 billion, but did not give a timetable.
Guo said there was already a large amount of QFII funds in China's markets. "More inflows into the Chinese markets would not be a good thing for the markets," he said.
Authorities have been struggling to reduce excess liquidity in the booming stock and money markets.
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