People's Bank of China and State Administration of Foreign Exchange, Provisions for the Administration of the Domestic Securities Investment Capital of Foreign Institutional Investors (Draft for Comments)

中国人民银行、国家外汇管理局境外机构投资者境内证券投资资金管理规定 (征求意见稿)

February 06, 2020 | BY

Susan Mok

QFII scheme is streamlined

Promulgated: 2020-12-13
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Issued: December 13, 2020

Main contents: With the removal of investment limits, the Draft combines the capital administration of both qualified foreign institutional investors (QFIIs) and renminbi qualified foreign institutional investors (RQFIIs), subjecting both to just the registration of their domestic investment capital with the State Administration of Foreign Exchange (Part Two).

The Draft also combines currency administration, QFIIs and RQFIIs may remit their investment capital inward in foreign currencies or renminbi, or both (Article 8).

The limit on the number of custodians is also lifted. QFIIs and RQFIIs only need to specify the main custodian when there are two or more custodians (Article 3).

Accounting procedures are also simplified, foreign institutional investors are only required to submit an undertaking of tax payment when remitting aggregate investment returns outward and no longer need to submit an audit report on investment returns (Article 13).

Issued:2020-12-13

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