Chinanews, Beijing, Apr. 12 – The China Banking Regulatory Commission (CBRC)and the State Administration of Foreign Exchange (SAFE)are drafting policies that aim at prudently expanding the investment range for qualified domestic institutional investors (QDII). The policies will not be unveiled until CBRC and SAFE have solicited ideas from industrial insiders and related administrative departments with regard to the policies.

 

In 2006, China allowed some domestic banking institutions to make investment overseas as domestic qualified institutional investors, or QDII. However, by adhering to the principle of prudent operation, CBRC only allowed QDIIs to invest in some fixed income instruments. Due to this limitation, QDII products did not sell as hot as people had expected.

 

A research report by Standard Chartered Bank shows that by the end of March, this year, China had granted a total of 18.5 billion US dollars quotas to QDIIs. However, only 5% of this amount was actually used. An authoritative person recently pointed out that the main problem lying in QDII system was its small investment range, which had actually limited its sale.