China Awards Record Level Of Investment Quotas To Foreign Groups

Tom Burroughes

14 November 2012

In a sign of how global firms are increasingly penetrating China’s once protectionist investments market, data shows that the Asian giant granted a record $2.75 billion in quotas to organisations such as Barclays, JP Morgan, Citigroup, Goldman Sachs and Standard Chartered.

A total of 192 entities received quotas, according to figures from Reuters, citing official regulatory registers.

In total, the quotas were granted in October to invest in China's stock and bond markets under the Qualified Foreign Institutional Investor scheme.

The authorities in Beijing will lift the QFII investment ceiling if its current, RMB80 billion ($12.84 billion) limit is reached. As of end-October, 192 QFIIs have been awarded $33.6 billion in quotas, Reuters said.

The country has been pushing its QFII scheme, at a time when fund inflows have slowed due to concerns that the once red-hot Chinese economy is slowing, even leading to concerns about an exodus of money.

The scheme has run since 2003.

Among other firms receiving quotas, according to data compiled from organisations such as China Securities Regulatory Commission and State Administration of Foreign Exchange, are Duke University; Macquarie Bank; Generali Fund Management; Henderson Global Investors, Investec Asset Management and the Monetary Authority of Singapore.