China's foreign exchange authority has awarded investment quotas totaling 6.57 billion U.S. dollars to 34 qualified foreign institutional investors (QFII) by the end of April.

According to figures released by the State Administration of Foreign Exchange (SAFE), a total of 40 foreign institutional investors have been allowed to enter the Chinese capital market as QFII.

Investors from overseas in China are allowed to hold tradable shares only through QFIIs.

China began to grant overseas institutional investors the status of QFIIs in May 2003, and the Chinese government promised to increase the total investment quota to 10 billion US dollars.

SAFE approved 2.22 billion US dollars in investment quotas for QFIIs last year.

The China Securities Regulatory Commission granted QFII status to three foreign investment institutions in a period of one week last month in a bid to increase capital inflow into the country's stock market.

The latest QFIIs granted investment quotas or additional quotas include P Morgan Chase Bank, The DBS Bank Ltd, and JF Asset Management Limited.

SAFE announced in April that it had given an additional quota of 100 million dollars to JP Morgan Chase Bank, raising its total to 150 million dollars.

The DBS Bank Ltd, Singapore's largest bank and a subsidiary of investment firm Temasek Holdings, was awarded a quota of 100 million dollars.

JF Asset Management Limited was given a quota of 150 million dollars, with at least 100 million dollars to be used as a JF stock fund.

A SAFE statement said QFIIs had helped the reform and innovation of China's capital markets since the scheme was piloted in December 2002.

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