THE Chinese foreign exchange regulator is to loosen its control over the qualified foreign institutional investor program, which allows overseas institutions to invest in the Chinese securities market.
The State Administration of Foreign Exchange is revising rules concerning restrictions on QFII funds, and may shorten the lock-up period required before the funds are allowed to be invested in the mainland market, financial Website Hexun quoted SAFE deputy head Li Dongrong as saying yesterday.
No timetable for implementation of the reform was given, nor were further details of how it would be carried out released.
The reform would be another major move in China's plan to further develop its capital market through the introduction of the QFII system in 2002, after the regulator tripled the investment quota from US$10 billion to US$30 billion in December last year, analysts said.