• About
  • Advertise
  • Privacy & Policy
  • Contact
VOPAM
Advertisement
  • Home
  • News
  • Business
  • Politics
  • Sports
  • Entertainment
  • World
  • Store
    • Shop
    • Cart
    • Checkout
    • My account
    • Wishlist
No Result
View All Result
  • Home
  • News
  • Business
  • Politics
  • Sports
  • Entertainment
  • World
  • Store
    • Shop
    • Cart
    • Checkout
    • My account
    • Wishlist
No Result
View All Result
VOPAM
No Result
View All Result
Home World

China expand access for foreign investors under combined scheme.

vopam by vopam
September 26, 2020
in World
2 min read
0
China expand access for foreign investors under combined scheme.

China moved to further ease foreign access to its capital markets on Friday, officially combining two major inbound investment schemes and broadening the scope for foreign institutional investment.

The finalized rules, published by The China Securities Regulatory Commission (CSRC), the central bank and the foreign exchange regulator, combine the Qualified Foreign Institutional Investor (QFII) scheme and its yuan-denominated sibling, RQFII. The schemes channel foreign capital into Chinese stocks and bonds.

The new rules, which will take effect on November 1, would also expand investment scope under the combined scheme.

The rule changes “will fundamentally relieve major bottlenecks for foreign institutional investors seeking to invest in China,” said Thomas Fang, head of China Global Markets at UBS.

He said the move will encourage more medium- and long-term funds to enter the Chinese market directly, adding that the new rules will also broaden the investor base in using financial and hedging instruments in China.

The announcement coincides with FTSE’s decision earlier in the day to include Chinese government bonds in its flagship World Government Bond Index. Goldman Sachs estimates China’s inclusion could drive 140 billion U.S. dollars into the mainland bonds over the inclusion period.

The rules also lower the threshold for overseas applicants and simplify the vetting process.

Investors will be allowed to buy securities traded on Beijing’s New Third Board and invest in private funds or conduct bond repurchase transactions.

In addition, foreign institutions will also have access to derivatives, including financial futures, commodity futures and options, according to the new rules.

QFII and RQFII were adopted in 2003 and 2011, respectively, in an effort to gradually open China’s capital market. The pace for China’s financial reforms has proven to be intact from the coronavirus pandemic. The country has removed QFII and RQFII quotas and launched the Wealth Management Connect pilot scheme earlier this year.

Moreover, China’s effective epidemic prevention and relative optimistic economic outlook have led to a growing appetite for Chinese stocks among global investors in an environment of ultra-low interest rates. Foreign holdings of Chinese stocks and bonds increased by 50 percent and 28 percent respectively by the end of June compare with a year earlier, data from information provider Wind showed.

Share this:

  • Click to share on WhatsApp (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Telegram (Opens in new window)
  • Click to print (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to share on Tumblr (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to share on Pocket (Opens in new window)
  • Click to share on Skype (Opens in new window)

Related

Tags: China
Previous Post

Virus fears push European stocks to worst week since June

Next Post

Coronavirus: Two million death “Very Likely” even with vaccine – WHO warns

vopam

vopam

Related Posts

German health minister defends European solution to vaccine orders
World

German health minister defends European solution to vaccine orders

December 30, 2020
14
Biden says Trump administration’s vaccine plan is ‘far behind’
World

Biden says Trump administration’s vaccine plan is ‘far behind’

December 30, 2020
8
Britain will now be a ‘best friend and ally’ to EU, says Johnson
World

Britain will now be a ‘best friend and ally’ to EU, says Johnson

December 30, 2020
2
Trump campaign files Supreme Court challenge over Wisconsin
World

Trump campaign files Supreme Court challenge over Wisconsin

December 30, 2020
0
Chile finds new coronavirus variant in traveller from London
World

Chile finds new coronavirus variant in traveller from London

December 30, 2020
4
British regulator authorizes use of AstraZeneca/Oxford vaccine
World

British regulator authorizes use of AstraZeneca/Oxford vaccine

December 30, 2020
4
France plans to tighten evening curfew in hard-hit areas
World

France plans to tighten evening curfew in hard-hit areas

December 30, 2020
3
IHRC calls for independent inquiry into the abduction and mysterious death of Karima Baloch
World

IHRC calls for independent inquiry into the abduction and mysterious death of Karima Baloch

December 30, 2020
37
Next Post
Coronavirus: Two million death “Very Likely” even with vaccine – WHO warns

Coronavirus: Two million death “Very Likely” even with vaccine - WHO warns

Lebanon’s PM-designate Adib fails to form new government after blast

Lebanon's PM-designate Adib fails to form new government after blast

Leave a Reply Cancel reply

Stay Connected test

  • 85 Followers
  • 33k Followers
  • 103k Subscribers
  • 23k Followers
  • 99 Subscribers
  • Trending
  • Comments
  • Latest
Football Players In Germany Go Naked In Artist Protest

Football Players In Germany Go Naked In Artist Protest

August 17, 2020
Police probe Argyll Ballet West school abuse allegations

Police probe Argyll Ballet West school abuse allegations

August 20, 2020
Nigerian Prophet TB Joshua Releases Prophecy For Donald Trump

Nigerian Prophet TB Joshua Releases Prophecy For Donald Trump

August 28, 2020
Mahama Will Be Free From Tracey Boakye’s Blackmail, Threats For Properties Soon — Gloria Kani [Video]

Mahama Will Be Free From Tracey Boakye’s Blackmail, Threats For Properties Soon — Gloria Kani [Video]

August 13, 2020
Sudan protests activist’s torture and killing

Sudan protests activist’s torture and killing

0
Agona East District records first COVID-19 case

Agona East District records first COVID-19 case

0
Adjust to live with novel coronavirus – Health Minister

Adjust to live with novel coronavirus – Health Minister

0
Hotel refuses accommodation to health workers over GH¢ 219,000 debt

Hotel refuses accommodation to health workers over GH¢ 219,000 debt

0
Sudan protests activist’s torture and killing

Sudan protests activist’s torture and killing

December 31, 2020
Year in Review: Breakdown of major talking points from the sports industry

Year in Review: Breakdown of major talking points from the sports industry

December 31, 2020
Prominent Ivory Coast opposition figure released from prison

Prominent Ivory Coast opposition figure released from prison

December 31, 2020
German health minister defends European solution to vaccine orders

German health minister defends European solution to vaccine orders

December 30, 2020

Recent News

Sudan protests activist’s torture and killing

Sudan protests activist’s torture and killing

December 31, 2020
9
Year in Review: Breakdown of major talking points from the sports industry

Year in Review: Breakdown of major talking points from the sports industry

December 31, 2020
30
Prominent Ivory Coast opposition figure released from prison

Prominent Ivory Coast opposition figure released from prison

December 31, 2020
18
German health minister defends European solution to vaccine orders

German health minister defends European solution to vaccine orders

December 30, 2020
14
Facebook Twitter Youtube Instagram
VOPAM

Follow Us

Browse by Category

  • Africa (752)
  • Business (482)
  • Entertainment (410)
  • Local News (351)
  • News (2,119)
  • Politics (383)
  • Sports (503)
  • uncategorized (70)
  • World (314)

Recent News

Sudan protests activist’s torture and killing

Sudan protests activist’s torture and killing

December 31, 2020
Year in Review: Breakdown of major talking points from the sports industry

Year in Review: Breakdown of major talking points from the sports industry

December 31, 2020

© 2020 Voice of Pan African Media. All Rights Reserved

No Result
View All Result

© 2020 Voice of Pan African Media. All Rights Reserved