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)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Earnings Season

Earnings Season

Reliance Q4 sales rise, refining margin narrows.  Read 

Innovative Solution

Innovative Solution

Turning smog into jewels - a Dutch designer's solution to Beijing's pollution.  Video 

Insider Trading

Insider Trading

Rajaratnam's brother loses bid to dismiss insider trading charges.  Full Article 

Literary Giant Dies

Literary Giant Dies

Mourning and memories in Gabriel Garcia Marquez's languid hometown.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

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