January 29, 2013 / 8:48 AM / 5 years ago

China says to allow RQFII for Taiwan investors

TAIPEI, Jan 29 (Reuters) - China will give investment quotas for Taiwanese seeking to put money into its financial markets under the Renminbi Qualified Foreign Institutional Investor (RQFII) programme, China’s top securities regulator said on Tuesday.

A China Securities Regulatory Commission (CSRC) official announced the increase after an unprecedented meeting between Chairman Guo Shuqing and Taiwan’s top financial regulator earlier in the day.

The two sides have been moving to bolster their ties in the financial sector, which have lagged their closer cooperation in manufacturing and other areas due to Taiwanese concerns over influence by China, its one-time political foe.

China’s central bank and Bank of China’s Taipei branch signed a clearing agreement last week for yuan transactions in Taiwan, completing the last step for the launch of yuan-based transactions in Taiwan next month.

Guo said earlier this month in Hong Kong that China could increase its RQFII and QFII investment quotas 10-fold.

China introduced the RQFII scheme, which allows overseas investors to deploy offshore yuan in mainland markets, at the end of 2011 with an initial quota of 20 billion yuan ($3.2 billion) and raised that to 70 billion yuan last year. (Reporting by Faith Hung; Editing by Jacqueline Wong)

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