Combined Schemes of QFII/RQFII Expand Access for Foreign Investors
ISSUING AUTHORITIES:
China Securities Regulatory Commission
People’s Bank of China
State Administration of Foreign Exchange
DATE OF ISSUANCE:
September 25, 2020
EFFECTIVE DATE:
November 1, 2020
On September 25, 2020, the China Securities Regulatory Commission (CSRC), the People’s Bank of China (PBC) and the State Administration of Foreign Exchange (SAFE) released the Measures for the Administration of Domestic Securities and Futures Investment by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (“Measures”). The CSRC simultaneously promulgated an implementation rule. The Measures and the implementation rule have taken effect as of November 1, 2020.
With the Measures and the implementation rule coming into effect, China’s QFII and RQFII schemes introduced in 2006 and 2013 respectively, which channel foreign capital into Chinese stocks and bonds market, are now integrated, and the new unified schemes are further liberalized with the following highlights:
The most noteworthy revision may be the expansion of investment scope. QFIIs and RQFIIs may now invest in additional asset types in the Chinese domestic markets, including securities admitted on the National Equities Exchange and Quotations (NEEQ) market, private investment funds, financial futures, etc., and may participate in bond repurchase transactions, margin trading and securities financing on stock exchanges, etc. Investors may also gradually have access to derivatives in an orderly manner.
Further, the entry requirements have been loosened. The restriction on the numbers of entrusted intermediary institutions has also been cancelled and data submission requirements have been reduced.
The Measures also enhance cross-market supervision, cross-border supervision and strengthen punishments for regulatory violations under specified circumstances.
Reference:
《合格境外机构投资者和人民币合格境外机构投资者境内证券期货投资管理办法》
《关于实施<合格境外机构投资者和人民币合格境外机构投资者境内证券期货投资管理办法>
