In the news: The U.S. gets $38B RQFII quota, carmakers lobby for electric vehicle tax cuts and China Life invests $600M in Didi

China gives the U.S. $38 billion RQFII quota

China is granting the United States an investment quota of Rmb280 billion ($38 billion) for the first time to buy Chinese stocks, bonds and other assets. China has already allocated quotas to several countries including the UK, France and Singapore, but this would be the largest given to a single jurisdiction after Hong Kong. The move, which allows the PRC to pursue its ambition of globalizing its currency, gives U.S. investors greater access to China's onshore markets under the renminbi qualified foreign institutional investor (RQFII) program. This could also increase the chances of MSCI Inc. including Chinese shares in its index this week, a decision that is projected to help draw as much as $30 billion in inflows in a year's time.* Foreign market participants are generally cautious when it comes to China, especially since investor confidence plummeted after the 2015 stock meltdown. Local debt, under-regulated shadow banking and P2P lending are all lingering concerns as well. China says it will allow foreign firms to take bigger stakes in securities and fund management companies—the help of more mature international institutional investors may be just what it needs to bring more depth to onshore financial markets.