RQFII extended to HK's banks, insurers

China's top securities regulator now allows commercial banks and insurance companies in Hong Kong to participate in the pilot program for renminbi qualified foreign institutional investors, or RQFII, a move to attract more long-term funds from overseas to boost the mainland capital market.

Before that, only the Hong Kong-based subsidiaries or branches of mainland fund management companies and securities companies could issue renminbi-denominated investment tools for foreign investors.

The modified regulation for the RQFII pilot program took effect on Thursday, the China Securities Regulation Commission announced.