A recent hot topic in the China market is the easing of QFII investment rules by the Chinese government that will come into effect on 1 September. The object is to attract more non-speculative overseas investment to the stock markets.
So far, more than 40 banks and asset managers have obtained permission under the QFII scheme to invest over 7 billion US dollars.
Summary of major changes
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Halves the asset requirements for the scheme from USD 10 billion to USD 5 billion with an exception of securities firms and commercial banks which will remain unchanged.
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Investors will also be allowed to repatriate their funds sooner than the present 3 months to one year lock up period.
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Quota of foreign investment in the Chinese stock markets will also be raised.
This is believed to have major impact on China themed funds as well as China A-shares. Already many stocks has reacted positively to the news.
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