China foreign investment quotas rise to $16 billion in 2012

SHANGHAI Fri Jan 11, 2013 5:16pm IST

Stocks

   

SHANGHAI (Reuters) - China awarded nearly $16 billion of quotas to foreign securities investors in 2012, equivalent to the total granted during the previous six years, official data showed on Friday, as Beijing steps up the opening of its capital markets.

In December alone, eight overseas institutions, including Morgan Stanley (MS.N) and Deutsche Bank (DBKGn.DE) obtained fresh or additional quotas worth a total of $1.4 billion, the State Administration of Foreign Exchange (SAFE) said in a statement on its website.

That brought last year's quotas under the Qualified Foreign Institutional Investor (QFII) scheme, foreigners' main gateway to China's stock and bond markets, to $15.8 billion, matching the total awarded in 2006 through 2011.

The explosive growth in QFII quotas underscore Beijing's renewed desire to usher in more foreign investors, especially long-term players such as sovereign, pension and endowment funds, to help stabilize and develop domestic stock markets.

Total quotas for QFII, launched in 2003, reached $37.44 billion at the end of last year.

Separately, SAFE said on Friday that as of the end of 2012, China had granted a combined quota of 67 billion yuan ($10.8 billion) under a similar, yuan-denominated scheme, the Renminbi Qualified Institutional Investor (RQFII) program.

RQFII, launched in late 2011, is designed to allow the Hong Kong units of Chinese fund houses and brokerages to raise off-shore yuan to invest in mainland capital markets.

(Reporting by Samuel Shen and Kazunori Takada; Editing by David Holmes)

Fast-tracking Projects

REUTERS SHOWCASE

Oil Prices

Oil Prices

Oil resumes slide after brief rebound on short-covering.  Full Article 

Space Programme

Space Programme

ISRO tests its heaviest space launch vehicle, eyes global market   Full Article 

Coal India Strike

Coal India Strike

Coal India workers threaten five-day strike, stokes output worries  Full Article 

Gold Discount

Gold Discount

Dealers offer gold discount for first time in five months  Full Article 

Lakhvi Granted Bail

Lakhvi Granted Bail

Pakistan court bails man accused of masterminding Mumbai attack  Full Article 

GST Bill

GST Bill

Cabinet clears bill for nationwide goods and services tax.  Full Article 

Aviation Sector

Aviation Sector

Breakingviews: SpiceJet rescue is no fix for India aviation woes.  Full Article 

Global Economy

Global Economy

Fed confident on U.S. growth, opens door wider to rate hike.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage