Legislation roundup: RQFII investments and foreign debt
March 08, 2013 | BY
clpstaff &clp articles &The China Securities Regulatory Commission has expanded the scope for RQFII investments, while the State Administration of Foreign Exchange has set the short-term foreign debt quota for certain foreign-funded banks
Capital markets
China Securities Regulatory Commission, People's Bank of China and State Administration of Foreign Exchange, Measures for Pilot Projects for Securities Investment in China by the Renminbi-qualified Foreign Institutional Investors of Fund Management Companies and Securities Companies
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China Securities Regulatory Commission, Provisions for the Implementation of the «Measures for Pilot Projects for Securities Investment in China by Renminbi Qualified Foreign Institutional Investors»
中国证券监督管理委员会关于实施《人民币合格境外机构投资者境内证券投资试点办法》的规定
The Measures and Provisions expand the scope of institutions allowed to take part in the pilot projects for renminbi qualified foreign institutional investors (RQFIIs) from just the Hong Kong subsidiaries of fund management companies and securities companies in China to also including Hong Kong subsidiaries of commercial banks and insurance companies, as well as financial institutions incorporated and with a principal place of business in Hong Kong.
The requirement that 80% of the proceeds be invested in fixed return securities is lifted and RQFIIs may now have their own investment portfolios.
Shareholding requirement is specified as a single RQFII may not hold more than 10% of the shares of a single listed company in China.
Further reading
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Financing
State Administration of Foreign Exchange, Circular on Issues Relevant to Setting the Ceilings for the Balance of the Short-term Foreign Debts of Institutions in China in 2013
SAFE raises the short-term foreign debt quotas of banks. The 2013 ceiling for certain foreign-funded banks with legal personality and branches of foreign-funded banks that have implemented centralised management of ceilings is set at US$15,304,770,000.
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Further reading
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