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
approved