RQDII banned from remitting funds overseas for foreign currency

Updated 2018-05-03 14:42:20 Ecns.cn

(ECNS) -- The People's Bank of China has issued a new rule to regulate overseas securities investment by Renminbi Qualified Domestic Institutional Investors (RQDII).

It allows RQDII to invest in yuan-denominated assets overseas but bans them from moving yuan out of the country for forex purchases, according to the central bank's notice.

RQDII shall report basic information, including fund sources, fund scale and investment plan to the Shanghai HQ of the central bank, which will maintain a macro management role according to offshore RMB liquidity and other factors.

Domestic custodian banks should strengthen review on the authenticity and legality of overseas investment by qualified foreign institutional investors and ensure that their investment complies with laws and regulations.

Shanghai HQ should formulate corresponding implementation rules and strengthen supervision on information related to RQDII investors, who should regularly report their investments to People's Bank of China.

Violators will be punished accordingly.

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