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China likely to replenish QFII quotas this year
(Xinhua)
Updated: 2007-02-16 15:05 The State Administration of Foreign Exchange (SAFE) has approved investment quotas for two qualified foreign institutional investors (QFIIs), bringing the remaining quota to be allocated for QFII trial operations on Chinese markets to US$55 million.
The SAFE will likely replenish the total investment quota this year, industry observers said on Friday. Of the 52 registered QFIIs, 48 have obtained investment quotas. China ushered in a QFII system in 2003. With the approval of the State Council, China's cabinet, the total investment quota for QFII operations increased from four billion to US$10 billion in September 2005. According to the SAFE, the two QFIIs that newly obtained investment quotas were HSBC Investment (Hong Kong) Limited and Sumitomo Mitsui Asset Management Company, Limited. They shared US$400 million in quotas equally. The HSBC Investment (Hong Kong) Limited was approved to open a foreign-exchange account and a RMB special account with the Bank of Communications. The Sumitomo Mitsui Asset Management Company, Limited was allowed to open a forex account and a RMB special account with the Citibank Shanghai branch, the SAFE said. Industry observers believe a quota expansion is inevitable. They say the threshold will possibly be lowered for QFII business this year, with five billion to US$10 billion to be added to the total investment quota. (For more biz stories, please visit Industries)
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