QFII Scheme Developments

Update on QFII Policies

Recent Development of QFII Rule of SAFE

On February 4, 2016, State Administration of Foreign Exchange (SAFE) released the revised version of Regulations on the Foreign Exchange Administration for the QFII’s Domestic Securities Investments (Chinese only). For more details, please visit the website of State Administration of Foreign Exchange (SAFE).

The former version of Regulations on the Foreign Exchange Administration for the QFII’s Domestic Securities Investments released on October 10, 2009, the Provisions on Foreign Exchange Administration of Domestic Securities Investment by Qualified Foreign Institutional Investors released on December 14, 2012 and the Circular of the General Affairs Department of the State Administration of Foreign Exchange on Releasing QFII Quota Administration Guideline released on September 30, 2015 are accordingly abolished by State Administration of Foreign Exchange (SAFE).



Recent Development of QFII Rule of CSRC

On July 27, 2012, the China Securities Regulatory Commission (CSRC) issued Provisions on Relevant Issues Concerning the Implementation of the Administrative Measures for Securities Investment Made in China by Qualified Foreign Institutional Investors. Compared with the previous provisions, following changes have been made into the new:

  •Threshold for QFII qualification has been lowered and the required application documents simplified;

  •QFII is permitted to invest in stock index futures, fixed income products traded in inter-bank bond market and private placement SME bonds;

  •Ceiling of A-share stake in a single listed company held by foreign investors has been raised from the previous 20% to 30%.