Foreign Exchange Rules Related to Qualified Foreign Institutional Investors (QFIIs) Released as Expected in China

more+
less-

The QFII program, as a principal means for foreign investors to invest directly in China’s securities market, has undergone significant changes in the past year. Most recently, the State Administration of Foreign Exchange of the PRC released the revised foreign exchange rules related to QFIIs 1 on December 7, 2012, which became effective on the same date. As illustrated in detail below, the revised QFII foreign exchange rules include three major changes: (i) allowing QFIIs to open RMB special deposit accounts for the purpose of trading futures (Futures Trading Accounts), (ii) allowing QFIIs that launch China Open-ended Funds to inject funds into the QFIIs’ accounts or repatriate the same outside China on a weekly basis, and (iii) abolishing the limit on the total investment quotas for three types of QFIIs. Not surprisingly to industry players in the QFII sector, the revised QFII foreign exchange rules continued the Chinese government’s efforts toward QFII liberalization made throughout the entire year of 2012.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

more+
less-

Dechert LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×