Shanghai Stock Exchange, Implementing Rules for Securities Trading by Qualified Foreign Institutional Investors and Renminbi Qualified Foreign Institutional Investors

Issued: March 19 2014
Effective: as of date of issuance

Main contents: The Rules broaden the investment scope of qualified foreign institutional investors and renminbi qualified foreign institutional investors (collectively referred to as “QFIIs”), adding new products such as preference shares, policy financial bonds, asset-backed securities and advance offerings of treasury bonds (Article 12). The Rules also increase the aggregate shareholding limit for foreign investors in A shares of a listed company from 20% to 30% of the total number of shares of the listed company, whereas that for a single foreign investor remains unchanged (Article 15). Strategic investments in listed companies by foreign investors are not subject to such limits (Article 22).