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Fang submitted 2016-09-06 17:12:43

China Securities Journal online news, The PBOC and SAFE issued a notice of relevant issues about the domestic securities investment management by RQFII on Sep 5,2016. The notice clarifies the standard of the RQFII quota basis. The notice points out that the SAFE will adopt a registration or examination and approval administration over individual RQFII’s investment quota.

(Bloomberg) -- RQFII base quota is calculated based on
asset scale, approved QFII quota, according to rules posted on
central bank website.

* Investors under RQFII scheme will be given certain amount of
investment quota after registration
* RQFII needs to get approval from State Administration of
Foreign Exchange if it needs additional quota
* Overseas sovereign funds, central banks and monetary
authorities is not restricted by the methodology
* PBOC, SAFE can adjust standards used to calculate base quota
considering balance of payments, capital market development
* RQFII investors cannot trade or transfer quotas to other
entities and individuals by any channels
* SAFE reserves the right to retract all or part of RQFII
investors’ quotas if they don’t effectively use the
allocations within one year after they are registered or

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