China QFII quota rises to $96.79b

BEIJING — China's dollar-denominated Qualified Foreign Institutional Investors (QFII) program saw its total quota rise to $96.79 billion as of Nov 29, the forex regulator said Thursday.

The amount was up from $94.49 billion at the end of October, according to data from the State Administration of Foreign Exchange (SAFE).

Altogether 287 overseas institutions have received quotas under the QFII program to move money into the country's capital account.

The total quota under the RMB Qualified Foreign Institutional Investors (RQFII) program stood at 604.86 billion yuan (about $91.5 billion) as of Nov 29, higher than the 590.36 billion yuan recorded by the end of October.

China's currency, the yuan, is convertible for trade purposes under the current account, while the capital account, which covers portfolio investment and borrowing, is still largely controlled by the state due to concerns over abrupt capital flows in and out of the country.

To gradually open the capital account, the government introduced the QFII and RQFII programs in 2003 and 2011, respectively.

The QFII scheme represents the country's effort to allow licensed foreign investors to invest in its capital market. The RQFII program allows institutional investors with offshore renminbi deposits to invest in its onshore market.