China reports rise in approved QFII quota for February

China's dollar-denominated Qualified Foreign Institutional Investors (QFII) program saw its approved quota continue to rise in February, according to the country's forex regulator.

[File Photo:VCG]

As of the end of February, the QFII quota stood at 101.45 billion U.S. dollars, up from 101.35 billion dollars a month ago, according to the State Administration of Foreign Exchange.

Meanwhile, the quota in the RMB Qualified Foreign Institutional Investors (RQFII) program came in at 660.47 billion yuan (about 98.6 billion U.S. dollars).

China's currency, the yuan, is convertible for trade purposes under the current account, while the capital account, which covers portfolio investment and borrowing, is largely run by the state in an effort to manage capital flows in and out of the country.

The QFII and RQFII programs, introduced in 2003 and 2011, respectively, allow overseas institutional investors to move money into China's capital account for investment.

At the end of January, China Securities Regulatory Commission, the country's securities watchdog, started consulting public opinion on new rules that will combine the above two existing schemes.