China QFII quota remains at $94.49b

BEIJING - China's dollar-denominated Qualified Foreign Institutional Investors (QFII) program remained at $94.49 billion at the end of October, the forex regulator said Tuesday.

A total of 287 overseas institutions have received quotas under the QFII program to move money into the country's capital account, the State Administration of Foreign Exchange said.

As of Sept 30, the quota had stood at $94.49 billion.

The quota in the RMB Qualified Foreign Institutional Investors (RQFII) program stood at 590.36 billion yuan ($88.91 billion) as of Oct 31, higher than the 589.46 billion yuan recorded by the end of September.

China's currency, the yuan, is convertible for trade purposes under the current account, while the capital account, which covers portfolio investment and borrowing, is still largely controlled by the State due to concerns over abrupt capital flows in and out of the country.

To gradually open the capital account, the government introduced the QFII and RQFII programs in 2003 and 2011 respectively.

The QFII plan represents the country's effort to allow licensed foreign investors to invest in its capital market. The RQFII program allows institutional investors with offshore renminbi deposits to invest in its onshore market.