China to Raise Quotas for Two Outbound Investment Programs in Market Opening

China to Raise Quotas for Two Outbound Investment Programs in Market Opening

Dou Shicong

Date: Thu, 04/19/2018 - 19:30 / source:Yicai
China to Raise Quotas for Two Outbound Investment Programs in Market Opening
China to Raise Quotas for Two Outbound Investment Programs in Market Opening

(Yicai Global) April 19 -- China plans to boost quotas for the Qualified Domestic Limited Partner (QDLP) and the Qualified Domestic Investment Enterprise (QDIE) initiatives, two schemes that allow capital outflows for financial investment overseas, according to the country’s foreign exchange regulator.

The State Administration of Foreign Exchange (SAFE) will consider increasing quotas based on demand and foreign currency holdings to further open the financial market, spokesperson Wang Chunying said at a press conference to release first-quarter data on forex payments and receipts.

Shanghai and Beijing launched new pilot programs late last year, which received a welcome response from the market. The QDLP scheme allows institutional investors registered overseas to raise yuan-denominated funds from investors in mainland China, with proceeds transfused to overseas markets. Known as the Shenzhen version of QDLP, the QDIE initiative enables access to a wider range of foreign asset classes.
 

China launched the first QDLP pilot program in Shanghai in 2012. It is only open to hedge fund managers. The QDIE pilot was inaugurated in Shenzhen in 2014. It is available to various institutional investors.

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Keywords: QDLP, QDIE, State Administration of Foreign Exchange, Shanghai, Shenzhen