China simplifies forex rules for QDIIs

BEIJING - China's foreign exchange regulator on Tuesday moved to assist domestic investors in buying overseas securities, by relaxing rules on foreign exchange for qualified domestic institutional investors (QDIIs).

The limits will be canceled and the procedures simplified, the State Administration of Foreign Exchange said.

The administration ensure net outflow does not exceed approved investment quotas and will step up supervision of cross-border capital flow to guard against risk.

The QDII project was initiated in 2006 to allow Chinese banks, fund managers and insurance companies to invest in overseas securities under a quota management mechanism.