PBC and SAFE optimized cross-border fund management for QFII

On July 26, 2024, the PBC and SAFE streamlined regulations on cross-border fund management for QFII.

The key revisions are:

1. Simplified business registration procedures. The Regulations states that registration for QFII/RQFII businesses is completed by the principal reporter (custodian) through SAFE's ASOne platform. It also clarifies the rules for change of registered information and deregistration.

2. Optimized account management. The dedicated RMB deposit accounts for securities trading or derivatives trading are merged to reduce the number of accounts that need to be opened for various types of investment, with cost-saving effects.

3. Improved foreign exchange rules. The rules for cross-border capital flows of QFIIs and RQFIIs have been optimized, in particular the rules on which currencies can be transferred into and out of China, to make it easier for foreign institutional investors to invest in domestic securities.

4. Unified FX risk management model for QFII/RQFII and CIBM. The Regulations permits QFIIs and RQFIIs to complete the spot purchase and sale of foreign currencies and FX derivatives transactions through a domestic financial institution qualified to provide such foreign-currency services or China's interbank FX market, in addition to their custodians, on condition that such activities are based on bona fide transactions or hedging needs.

For more information please visit:

http://www.pbc.gov.cn/en/3688110/3688172/5188125/5419271/index.html