China’s government announced its quota for purchases of local shares by foreign institutional investors tripled on Monday, just ahead of key trade talks with the United States.
The State Administration of Foreign Exchange said in a notice on its Web site that the quota for such share purchases by so-called qualified foreign institutional investors - dubbed QFII - would rise to US$30 billion (EUR20 billion) from the current US$10 billion (EUR7 billion).
It did not give an exact date for when the long-anticipated change would take effect.
Local currency-denominated shares are off-limits for most foreign investors. China originally limited QFII investments to US$4 billion when it launched the program in 2002.
China committed to raising the QFII in earlier economic talks with the U.S., the official Xinhua News Agency cited Shang Fulin, chairman of the China Securities Regulatory Commission, as saying.
"China has underscored its intention to open up the country's financial markets," Xinhua said in describing the decision to triple the QFII quota.
The State Administration of Foreign Exchange, which oversees foreign exchange policies and dealings, said it would also expand channels for Chinese to invest overseas.
In a weary world of endless US military interventions, sanctions, trade tariffs and chaos, let’s pause and take stock of the shining house on the hill