Proactive Opening Up

The People’s Bank of China (PBC), China’s central bank, and the State Administration of Foreign Exchange (SAFE) issued new rules on May 7 to scrap quotas on the dollar-denominated qualified foreign institutional investor (QFII) scheme and its yuan-denominated sibling RQFII, and further streamline procedures in order to facilitate their participation in China’s financial market and boost the long-term development of the domestic capital market. The new regulations will take effect on June 6.

“It’s a positive signal put forth by China to its unswerving effort to open up its financial market, which is a proactive opening up devoid of any external pressure, and serves as an ideal