China details rules on RMB outbound investment scheme

Updated 2018-05-03 13:12:20 Xinhua

China's central bank on Thursday detailed rules on the RMB Qualified Domestic Institutional Investors (RQDII) scheme, allowing RQDII investors to invest in yuan-denominated assets overseas but banning them from moving yuan out of the country for forex purchases.

The rules require investors to report basic information including the source and scale of yuan funds, investment plans and their overseas positions to the central bank's Shanghai headquarters.

The overseas investment activities will be subject to the central bank's macro-prudential regulation based on factors such as cross-border capital flows, liquidity in the offshore RMB market and the development of yuan products.

Domestic custodian banks shall strengthen checks on the authenticity and legality of investment plans to ensure such activities are conducted according to laws and regulations, the central bank said.

First launched in 2014, the RQDII program allows qualified domestic investors to buy yuan-denominated assets in the overseas capital markets as China took a gradual approach to open up its financial sector.

China has introduced programs such as RQDII and Qualified Foreign Institutional Investors to provide financial institutions with quotas for outbound and inbound investment, respectively.

In April, China announced plans to increase quotas in two pilot schemes that allow domestic investors to access foreign assets, as part of broader efforts to open up the financial market.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58April 19 2019 12:40:58

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16April 19 2019 12:40:58

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18April 19 2019 12:40:58

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords