China allocated 3 billion yuan ($481 million) in quotas last month to foreign institutional investors to put offshore yuan holdings into mainland securities markets, as Beijing steps up the opening up of its capital account.
The allotment completes the divvying up of 70 billion yuan in quotas approved for the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme, and raises expectations that the details of the next tranche of 200 billion yuan in quotas will soon be announced.
The RQFII programme, launched at the end of 2011, allows foreign access to onshore capital markets via bond funds and exchange-traded funds (ETFs) denominated in yuan.
Asset management firms E Fund (Hong Kong) and China Asset Management (Hong Kong) were each awarded 1 billion yuan quotas by China's State Administration of Foreign Exchange. Harvest Global Investments received a 350 million yuan quota and Huatai Financial Holdings (Hong Kong) was granted 650 million yuan.
China introduced the RQFII
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