The Chinese government has recently expanded the
QFII program, allowing more foreign investors to participate.
中国政府最近扩大了合格境外机构投资者（
QFII）计划，允许更多的外国投资者参与。
Several major international investment firms have applied for
QFII status to gain access to China's capital markets.
几家主要的国际投资公司已申请成为合格境外机构投资者（
QFII），以获取进入中国资本市场的机会。
The
QFII program is crucial for China's financial reform as it introduces foreign institutional investors into the domestic market."
QFII计划对于中国的金融改革至关重要，因为它将外国机构投资者引入国内市场。
Foreign investors who want to invest in China must first obtain
QFII status through a rigorous application process.
想在中国投资的外国投资者必须首先通过严格的应用程序获得合格境外机构投资者（
QFII）身份。
The
QFII program has been instrumental in promoting cross-border capital flows and enhancing the liquidity of China's stock markets."
QFII计划在促进跨境资本流动和提高中国股市流动性方面发挥了重要作用。
China's
QFII program has been successful in attracting a diverse range of foreign investors from around the world.
中国的
QFII计划成功吸引了来自世界各地的各类外国投资者。
As part of its efforts to open up its financial markets, China has increased the quota for
QFII investors.
作为其开放金融市场努力的一部分，中国提高了合格境外机构投资者（
QFII）的配额。
The
QFII program has faced some challenges, including concerns about market volatility and regulatory issues."
QFII计划面临一些挑战，包括市场波动性和监管问题的担忧。
The Chinese Securities Regulatory Commission (CSRC) regularly reviews the performance of
QFII programs to ensure they operate smoothly.
中国证券监督管理委员会（CSRC）定期审查
QFII计划的表现，以确保它们运行顺畅。
With the growth of
QFII programs, there has been an increase in the number of foreign funds investing in China.
随着
QFII计划的增长，越来越多的外国基金开始投资中国。
Guotai Junan Securities facilitated Qualified Foreign Institutional Investors (QFII) to finalize the first ever margin trading and stock borrowing and lending business by foreign institutional investors in the China A Share market, with underlying stocks ranging from the Main Board, Growth Enterprise Market (GEM), Science and Technology Innovation Board (STAR Market) and etc on Tuesday.
国泰君安证券近日作为经纪商，助力合格境外机构投资者(QFII)完成首笔中国A股市场融资融券业务，标的股票涵盖主板、创业板(成长企业市场，GEM)及科创板(科技创新板)等多个市场。
QFII's participation in margin financing and securities borrowing and lending businesses will be helpful in attracting more high quality capital into the market, improving the long-short balance of the market, expanding investment scopes, as well as increasing market activity.
QFII参与融资融券和证券借贷业务，将有助于吸引更高质素的资金进入市场，改善市场的多空平衡，扩大投资范围，并提升市场活跃度。
Following the "Measures for Domestic Securities and Futures Investment by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors" issued by the China Securities Regulatory Commission (CSRC), the People's Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) on Sept 25th, 2020, QFII is allowed to conduct margin trading and stock borrowing & lending business on December 29.
根据中国证券监督管理委员会(CSRC)、中国人民银行(PBOC)和国家外汇管理局(SAFE)于2020年9月25日发布的《合格境外机构投资者和人民币合格境外机构投资者境内证券期货投资管理办法》，自2020年12月29日起，合格境外机构投资者(QFII)被允许进行融资融券和股票借贷业务。
Guotai Junan successfully finalized the first ever securities lending transaction for QFII in China on Nov 2nd 2020.
2020年11月2日，国泰君安成功完成了中国首笔QFII证券借贷交易。
QFII, RQFII platforms expected to have a better investing experienceChina is simplifying rules to facilitate foreign institutional investor activity in its financial market — the latest move by the country to expand financial opening-up and attract investment from abroad, experts said on Monday.
Foreign institutional investors are overseas institutions that invest in China's onshore financial market via the Qualified Foreign Institutional Investor (QFII) or the Renminbi Qualified Foreign Institutional Investor (RQFII) platforms — both examples of China's financial market opening-up — as well as other modalities such as stock and bond connects.
The unnamed SAFE official said that once the revisions are effective, QFII and RQFII investors will be eligible for generally the same registration procedures, foreign exchange risk management tools and currency exchange rules as China Interbank Bond Market (CIBM) investors, or foreign investors directly participating in China's interbank bond market.
Liang Si, a researcher at Bank of China's research institute, said the alignment of rules under two plans indicates that fund management rules facing both QFII and RQFII investors have been further eased, which will provide them with a better investing experience in China's financial market.
The QFII and RQFII funds mainly target the Chinese mainland financial market.
Fang Xinghai, vice-chairman of the CSRC, said China will continue to steadily expand the opening up of specific futures varieties, broadening the scope of the dollar-denominated qualified foreign institutional investor scheme (QFII) and its yuan-denominated sibling, RQFII.
"In the future, with the growing confidence and experience in dealing with foreign investors in the past 20 years, we expect to see more relaxation of the entry requirements by the Chinese securities regulator, such as adopting a filing system, instead of requiring foreign investors to obtain approval for QFII status.
In the next two or three years, we hope respective regulators may also release more detailed rules on the implementation of eligible products available to QFII program participants," said Li during a recent interview.
Launched by the Chinese government in 2002, the QFII program enables qualified foreign institutional investors to gain direct access to trade Chinese A shares, denominated in renminbi, on Chinese stock exchanges.
Currently, the types of investments that can be traded as part of the QFII system include listed stocks, treasury bonds, corporate debentures, convertible bonds, commodity futures and other financial instruments as approved by the China Securities Regulatory Commission.
"It is anticipated that the Chinese government may take the QFII program as a channel to allow more types of foreign institutional investors to invest in China.
The CSRC, China's top securities watchdog, released in mid-October rules for QFII and RQFII trading in the onshore derivatives market.
Commodity futures and options opened to QFII and RQFII under the Friday announcement cover nonferrous metals, agricultural products and chemicals.
Preparations should be accelerated so that overseas investors under the Qualified Foreign Institutional Investor (QFII) program and renminbi QFII program can have greater access to trading in commodity futures, commodity options and stock index options, said Fang Xinghai, vice-chairman of the China Securities Regulatory Commission, at the 19th Shanghai Derivatives Market Forum.
However, the mechanisms have not been used on the smaller exchange bond market, which applies another opening-up channel of the qualified foreign institutional investor programs, or QFII and RQFII, they said.
For example, last year, China scrapped quotas on the dollar-denominated qualified foreign institutional investor scheme (QFII) and its yuan-denominated sibling, RQFII, further streamlining the procedures for foreign institutional investors.
On Nov 12, the BSE announced that QFII and renminbi qualified foreign institutional investors will be able to trade on the new bourse as long as they have obtained permission to trade from the National Equities and Exchange Quotations prior to Nov 15.
China has yet to fully liberalize its capital account, with programs such as the QDII and Qualified Foreign Institutional Investors (QFII) providing financial institutions with quotas for outbound and inbound investment, respectively.
Amid efforts to further open up the financial market, China last year scrapped quotas on the dollar-denominated QFII scheme and its yuan-denominated sibling, RQFII, which further streamlined the procedures for foreign institutional investors.
According to the People's Bank of China, the central bank, 41 banks and investors under the schemes of QFII and RQFII can invest in bonds issued overseas and traded in Hong Kong's offshore market.
In the January-October 2020 period, there were only 31 QFII and RQFII qualification applications.
"We definitely see immediate impact," said Thomas Fang, head of China global markets and QFII representative with UBS, a multinational investment bank.
The market is reacting "very positively" to the revision, as it has strengthened the advantage of the QFII scheme in giving access to the most comprehensive set of onshore assets, compared with other inbound investment schemes like the stock connect that provide access to only one category of assets, Fang said.
Also, the QFII investment scope will gradually expand from mainly exchange-listed securities and funds to a much wider range that covers private investment funds, financial and commodity futures, options, and securities admitted on the National Equities Exchange and Quotations system.
The new regulation also combined QFII and RQFII schemes, removed quantitative qualification requirements such as the one on the asset scale of foreign investors, and halved the time it takes to review and decide whether to approve the applications to 10 working days.
"International investors are seeing more efficiency and clarity in terms of gaining access to China," Madera said, adding that the QFII changes are expected to trigger a major increase in the number of qualified investors, though it still takes time for the changes to be fully understood.
That is, securities in UBS' QFII account were lent to onshore investors via its onshore joint venture UBS Securities, Fang said.
Looking ahead, the QFII relaxation, in tandem with the importance of the Chinese market, will attract more long-term investors like pension funds and sovereign wealth funds, as well as investors with a shorter investment horizon like hedge funds and quantitative funds, Fang said.
Also, thanks to the widened QFII market access, in a first deal of its kind, an overseas investor bought a mainland-based foreign private fund manager's product in Shanghai, the local financial supervision bureau said in December.
The deal demonstrated how the QFII relaxation can facilitate the development of foreign private fund managers in China, as they can use money injected from their overseas parent companies to build up funds, the Shanghai Municipal Financial Regulatory Bureau said.
Shanghai-based Guotai Junan Securities conducted the first such transaction, while Beijing-based CITIC Securities opened the first margin trading accounts for its QFII clients on Monday.
Tuesday marks the first time that global investors can conduct such transactions in China's A-share market, following the new Qualified Foreign Institutional Investors (QFII) regulations that took effect on Nov 1.
The new QFII regulations made major amendments to the previous regime, including unifying QFII and Renminbi Qualified Foreign Institutional Investors (RQFII) plans and expanding permissible investment scope, as well as offering a more convenient and flexible framework for foreign investors to participate in China's capital markets.
Margin financing and securities borrowing, together with securities lending enabled last month, will significantly expand the variety of financial instruments available to QFII investors and provide new ways for them to participate in China's A-share market, experts said.
"We have seen a significant new wave of QFII applicants in recent months.
UBS AG also announced on Tuesday it executed several securities' borrowing and subsequent short-sell transactions through its QFII account on the first day of market trading.
"Following the launch of Shanghai/Shenzhen-Hong Kong Stock Connect and the inclusion of A-shares in three major international indices, this latest relaxation of QFII rules will further boost the inflow of foreign capital.
It is important because foreign participation in China's onshore securities' lending and borrowing market enhances the 'price-discovery' function of the stock markets," said Tommie Fang, head of China global markets and QFII representative at UBS.
In this regard, for example, policymakers have expanded access to the country's onshore capital markets by removing quota restrictions on the qualified foreign institutional investor and renminbi QFII plans, and through enhancements to the Bond Connect, which allows international investors increased access to the Chinese mainland's bond markets through Hong Kong.
Foreign investors will enjoy easier market access and broader investment scope when investing via the dollar-denominated Qualified Foreign Institutional Investors (QFII) and the yuan-denominated Renminbi Qualified Foreign Institutional Investors (RQFII) schemes, according to the China Securities Regulatory Commission (CSRC).
The new rules, published by the CSRC, together with the People's Bank of China and the State Administration of Foreign Exchange, have combined the previous two separate sets of regulation for the QFII and RQFII schemes into one, lowering entry requirements and simplifying procedures to facilitate foreign investment.
The QFII and RQFII programs, introduced in 2003 and 2011, respectively, allow overseas institutional investors to move money into China's capital account to encourage controlled flows.
In a bid to further open up the financial market, China scraped quota restrictions on the QFII and RQFII schemes earlier this year.
Last year, the People's Bank of China, the central bank, announced a removal of the ceiling on quotas for foreign investors to buy stocks and bonds under the QFII scheme.
The measures may include QFII relaxation and license extension to foreign securities firms and asset managers, as well as potential investment banking and asset management license extensions to select banks, said Xing.
Currently, overseas investors are allowed to make investments in the bond market through various channels, including the qualified foreign institutional investor (QFII) and RQFII schemes, direct investment and the bond connect mechanism.
"China has also removed the investment quota limits for QFII and RQFII, and allowed enterprises like American Express, MasterCard and Fitch Ratings to enter the domestic market.
The priority is to implement the China-US phase one trade agreement, he said, such as by canceling the investment quota limits under the qualified foreign institutional investor (QFII) and RQFII schemes.
Yi cited measures such as abolition of the investment quota limits for Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII), and allowing enterprises like American Express, MasterCard and Fitch Ratings to enter China's market.
At present, foreign investors take part in the mainland stock market via stock connect programs with Hong Kong and qualified foreign institutional investor programs, namely QFII and RQFII.
According to market tracker Wind Info, overseas institutional investors were shareholders in 16 STAR-listed firms at the end of March this year through the qualified foreign institutional investor program or QFII, up from four by the end of last year.
The initiative has complemented the original open mode of direct market entry and multiple channels, such as QFII and RQFII.
Adhering to principles of rule of law, marketization and internationalization, PBOC approved three types of overseas institutions, RMB Qualified Foreign Institutional Investor (RQFII) and Qualified Foreign Institutional Investor (QFII) to invest in China's interbank bond market in 2010.
On Thursday, China announced it will scrap the quotas for the dollar-denominated qualified foreign institutional investor (QFII) scheme and its yuan-denominated sibling, RQFII, in a bid to further facilitate foreign institutional investors' participation in the country's financial market.
According to a statement issued by the PBOC and the State Administration of Foreign Exchange, foreign investors under the QFII scheme will be allowed to make inward remittances in the currency of their choice.
The country will remove quotas on the dollar-denominated qualified foreign institutional investor (QFII) scheme and its yuan-denominated sibling, RQFII, according to a new rule issued by the People's Bank of China and the State Administration of Foreign Exchange, which will take effect on June 6.
China will remove quotas on the dollar-denominated qualified foreign institutional investor (QFII) scheme and its yuan-denominated sibling, RQFII, according to the provisions issued by the People's Bank of China and the State Administration of Foreign Exchanges, which will take effect on June 6.
QFII will be allowed to freely choose in which currency and when they remit money to the country.
China will also simplify outward remittance procedures for QFII's securities investment gains and lift other restrictions.
China has integrated the Qualified Foreign Institutional Investors (QFII) program and the RMB Qualified Foreign Institutional Investors (RQFII) program as well as the direct market entry channels, while allowing overseas investors to choose a number of domestic financial institutions to trade over the counter and hedge foreign exchange risks through principal brokers or directly entering the inter-bank foreign exchange market, the PBOC said.
The China Securities Regulatory Commission, the country's top securities regulator, said recently that it will, as soon as possible, roll out the revised rules for the Qualified Foreign Institutional Investors program, known as QFII, and the renminbi-denominated RQFII, two programs that enable licensed foreign institutions to invest in the mainland markets.
In early 2019, the commission solicited public opinions on the draft of revised rules governing securities and futures investment under the QFII and RQFII programs, which proposed to consolidate the two programs into one so that foreign investors only need to make one license application.
China removed the quota limits on QFII and RQFII in September, as part of the country's breakthroughs in capital market opening-up last year.
China's dollar-denominated Qualified Foreign Institutional Investors (QFII) program saw its total quota rise to around $111.4 billion by the end of October, according to the State Administration of Foreign Exchange.
The QFII and RQFII programs, introduced in 2003 and 2011 respectively, allow overseas institutional investors to move money into China's capital account to encourage controlled flows.
"China has removed the quotas on foreign investors' purchases of domestic stocks and bonds through the QFII and RQFII in September, however, quotas were not used in full in the recent past and other reforms, such as the removal of a 10 percent limit for foreign overshore of A shares, which would be more meaningful to foreign investors," said Cantor.
Last month, the SAFE announced that it will remove the investment quota limits under the QFII and RQFII programs.
For foreign investors, the quota that used to limit the annual cross-border investment in Chinese equities, under the two schemes of QFII and RQFII, has just been erased.
The new rules came after China's financial reforms in September to abolish the investment quota limits for QFII and RQFII to boost financial opening-up.
A month after removing the annual investment quota restrictions for foreign investors under the Qualified Foreign Institutional Investors (QFII) and RMB Qualified Foreign Institutional Investors (RQFII) regimes, regulators decided to allow foreign institutions to easily transfer funds across different accounts when investing in the interbank bond market.
Foreign institutions can access the domestic interbank bond trading through multiple channels, including QFII, RQFII, direct investment and the bond connect programs.
The new policy, released by the People's Bank of China and the State Administration of Foreign Exchange on Tuesday, said the same foreign institution, which invests in the interbank bond market directly or under the QFII or RQFII regimes, can directly transfer funds.
Overseas institutional investors now can invest in China's interbank bond market through various channels, including Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII), direct market entry and the Bond Connect program.
Since the implementation of the QFII system in 2002 and the RQFII system in 2011, more than 400 institutional investors from 31 countries and regions have invested in China's financial market in this way, according to the SAFE.
Foreign institutions that invest in the interbank bond market directly or under the Qualified Foreign Institutional Investors (QFII) and RMB Qualified Foreign Institutional Investors (RQFII) regimes can transfer its funds in between different accounts , without regular bond trading procedures as before.
Last month, SAFE removed the QFII and RQFII investment quota restrictions to attract foreign investment.
Earlier this month, China's forex regulator abolished the investment quota restrictions for Qualified Foreign Institutional Investors (QFII) and RQFII in its latest move to attract foreign investment.
Earlier this month, China's forex regulator - the State Administration of Foreign Exchange (SAFE) - decided to remove the investment quota restrictions for the Qualified Foreign Institutional Investor (QFII) and Renminbi Qualified Foreign Institutional Investor (RQFII) schemes to boost financial opening-up.
Such an endorsement came right after China announced last week it would scrap investment quotas under the QFII and RQFII programs, allowing global traders unfettered access to the world's second-largest capital market.
Although the Chinese forex regulator doubled the total QFII quota to $300 billion earlier this year, only $111.4 billion of that quota has been used so far.
Timeline of opening-up•xa0Nov 5, 2002 Regulations for Qualified Foreign Institutional Investors were released• Nov 17, 2014 The Shanghai-Hong Kong Stock Connect program was officially launched• Feb 2016 The State Administration of Foreign Exchange further relaxed the requirements and simplified the application process for the QFII• Dec 5, 2016 The Shenzhen-Hong Kong Stock Connect program was officially launched• June 1, 2018 The A-share market was included into the MSCI emerging markets index• June 17, 2019 The Shanghai-London Stock Connect program was launched• June 24, 2019 The A-share market was included in the FTSE GEIS index• Sept 10, 2019 The State Administration of Foreign Exchange removed the investment limit for QFII and RQFII
The QFII and RQFII schemes, introduced in 2002 and 2011 respectively, were seen as the most significant policy during China's opening up of its domestic capital markets.
Richard Pan, head of QFII investment at ChinaAMC, one of China's largest mutual fund companies, said as the domestic financial sector is continually opening up, foreign investment may increase to 10 percent of China's A-share and bond markets in the next decade.
China's forex regulator Tuesday announced it will abolish the investment quota restrictions for the Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII) to boost financial reforms and opening-up.
Since the implementation of the QFII system in 2002 and RQFII system in 2011, more than 400 institutional investors from 31 countries and regions have invested in China's financial market in this way, according to the SAFE.
In Q2 2019, foreign institutions, represented by those under China's Qualified Foreign Institutional Investors (QFII) program, bought a large number of A-share stocks, increasing stakes in many listed companies, recent interim reports of listed companies showed.
To meet the demand of overseas investment, China's QFII quota amounted to $111.38 billion this year, more than tripling the number from last year, according to the State Administration of Foreign Exchange.
A total of 292 overseas institutions have received quotas amounting to about $111.38 billion under China's Qualified Foreign Institutional Investors (QFII) program to move money into the country's capital account, according to the State Administration of Foreign Exchange.
To gradually open the capital account, the government introduced the QFII and RQFII programs in 2003 and 2011, respectively.
At present, foreign investors can only access STAR-listed firms through the Qualified Foreign Institutional Investor program or QFII and the renminbi-denominated RQFII－which enable licensed international institutional investors to invest in mainland stock exchanges via quotas, while the Stock Connect channel is still unavailable.
Among the more than 300 foreign institutions with QFII licenses, only six had subscribed to the initial public offerings of the 28 firms listed on the STAR Market, including Goldman Sachs and Singaporean sovereign wealth fund GIC Private Ltd, according to financial information provider Wind Info.
To date, only professional foreign money managers can access the companies listed on the STAR Market, via their allocations in existing quota programs like the qualified foreign institutional investors or QFII scheme.
Overseas investors could make investments in the markets through various channels, including the QFII and RQFII mechanism, direct investment and the Bond Connect, which effectively satisfies the differentiated investment demand of diverse investors.
The comments came after Pan Gongsheng, deputy governor of the People's Bank of China, said on Thursday that the country will ease and even cancel quota management for the QFII program, which enables licensed international investors to participate in mainland stock exchanges through a specified quota.
China will reform the QFII program and the yuan-denominated RQFII program, enlarging investment scopes of the programs, said Pan, who is also head of the State Administration of Foreign Exchange, the country's top foreign exchange regulator.
The current total quota under the QFII program is $300 billion, which was doubled by the SAFE in January.
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