China Opens The Financial Market Further

Forex News

As part of its plan to open the financial market, Chinese government announced it had set rules to improve money flows out of the country for foreign investors. According to China's forex regulator, cancel the 20% monthly repatriation limit under the dollar-dominated QFII (qualified foreign institutional investor) scheme and scrap lockup periods for investment principal under QFII and its yuan-denominated analogical scheme, RQFII. Investors under QFII and RQFII will also be allowed to conduct foreign exchange hedging in China.

Head of research at fund consultancy Z-Ben Advisors, Ivan Shi told: "This is in line with China's general policy of opening-up, and could help shorten the process toward China's full inclusion into MSCI".