BEIJING, Aug 27 (Reuters) - China has relaxed rules to make it easier for domestic investors to put money into overseas securities, the top foreign exchange regulator said on Tuesday, moving a step forwards in the country’s capital account liberalisation.
The State Administration of Foreign Exchange said qualified domestic institutional investors (QDIIs), who are investing abroad on behalf of their clients, can use whatever foreign currencies they want, while the application process for foreign exchange quotas will be simplified.
It said the changes were aimed to facilitate overseas securities investment and better meet the demand from domestic institutions.
China launched the QDII scheme in 2006 to allow domestic institutions to invest abroad on behalf of their clients. The country still bars Chinese individuals from directly investing overseas.
The regulator reiterated that it will strengthen its monitoring of capital flows in and out of foreign securities markets to guard against risks.
(Reporting by Langi Chiang, Wang Lan and Jonathan Standing)
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