Beijing: Chinese authorities will significantly speed up approval of qualified foreign investors to trade Chinese onshore stocks and bonds, Caixin magazine reported on its website on Friday, citing a source close to the China Securities Regulatory Commission (CSRC).
The move comes amid signs that short-term capital is leaving China, as investors in Europe and the United States pull capital back to their home markets in response to global economic turbulence.
The Qualified Institutional Foreign Investor (QFII) scheme, launched in 2003, is the only official channel for foreign investors to buy yuan stocks and bonds traded on domestic exchanges.
The CSRC had approved 121 QFIIs as of the end of November and the State Administration of Foreign Exchange had granted a combined investment quota of $21.14 billion for 108 of them -- a tiny amount next to the total capitalization of the country’s stock markets at about ¥24 trillion ($3.77 trillion).
According to Caixin, the number of QFII licenses the CSRC plans to approve in the next two months will exceed the number approved in the last two years.
CSRC approved 27 QFIIs in 2010 and 2011 so far.