China Raises Limit on Overseas Investment After 10-Month Pause

  • QDII quota lifted to $167.8 billion from $165.5 billion: SAFE
  • ‘Serves as policy gesture from Beijing,’ Credit Agricole’s Zhi
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China lifted a cap on foreign securities investment for the first time since July, in a move that may help satisfy some of the surging demand for overseas assets even as Beijing seeks to bolster domestic markets.

The State Administration of Foreign Exchange approved a total quota of $167.8 billion for qualified domestic institutional investors (QDII) as of end-May, according to dataBloomberg Terminal from the agency’s website. That represents the first increase since July, when the limit was lifted to $165.5 billion, according to data compiled by Bloomberg.