China to Plan Looser Limits on Foreign Fund Outflows
- Central bank plans to relax rules for withdrawal of QFII funds
- PBOC also to loosen rules on when QFII funds enter the country
China Sets 6.5% to 7% Growth Target
China’s central bank plans to loosen rules for when foreign investors can bring money in and out of the country in a signal of its commitment to further open financial markets, according to people with direct knowledge of the matter.
The rule changes would apply to funds under the Qualified Foreign Institutional Investor program, which has granted about $81 billion in quotas for overseas investment in China’s domestic stocks and bonds, according to the people, who asked not to be identified because the plans have yet to be announced. Lock-up periods for the withdrawal of QFII funds from China would be relaxed and institutions would get more latitude over when they can bring money into the country, they said.