BEIJING, Nov. 2 (Xinhua) -- China's Shanghai and Shenzhen stock exchanges updated on October 30 securities transaction implementation rules for qualified foreign institutional investors (QFII) and Renminbi QFII (RQFII), effective as from November 1, reported Xinhua-run China Securities Journal last Sunday.
They took the moves to better satisfy needs of foreign institutional investors and facilitate coordinated development of different inward foreign investment accesses.
The Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) unveiled the amended rules after China's central bank, securities and foreign exchange regulators publicized on September 25 administrative rules for domestic securities and futures investment of QFII and RQFII, in which access thresholds for QFIIs and RQFIIs are lowered to facilitate investment of them.
SSE and SZSE widened in the new rules investment scope of QFIIs and RQFIIs to cover certificates of deposit, stock options, government-backed bonds, etc. and allowed them to participate in margin trading, securities lending, and bond repurchase transactions.
What's more, the two bourses lowered the required indicator for initial disclosure of the stocks holding proportion of a listed firm by the QFII or RQFII to 24 percent from 26 percent in the past.
According to related rules and regulations, QFIIs and RQFIIs shall not hold more than 30 percent of all the stocks of a firm listed on China's A-share market or all the stocks of a firm quoted for transaction in China.
The lowered proportion requirement for initial disclosure was to meet demand of QFIIs and RQFIIs in the overall stock holding conditions of foreign investors in listed companies in China. Recent years, enthusiasm and confidence of foreign institutional investors in China's A-share market kept growing alongside the inclusion of A-share stocks in related MSCI indexes and FTSE Russell.
Statistics with Wind, a financial data terminal, showed that there are 337 QFIIs and 278 RQFIIs at present. By September 28, the total market capitalization of A-shares held by QFIIs and RQFIIs valued 195.727 billion yuan, making up about 0.34 percent of the gross negotiable market cap of China's A-share market, according to data with Capital Securities. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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