China Speeds Up Approvals of Foreigners’ Stock Investment

http://www.bloomberg.com/news/2012-09-24/china-speeds-up-approvals-of-foreigners-stock-investment.html

China accelerated approval of quotas allowing foreign investors to buy mainland securities as the nation’s benchmark stock index traded near a three-year low. 

The government granted $9.2 billion quotas to qualified foreign institutional investors from Jan. 1 to Sept. 19, according to State Administration of Foreign Exchange statement published on its website yesterday. The government had approved a combined $30.8 billion in quotas as of Sept. 19 since the start of the program, according to the statement. 

The Shanghai Composite Index (SHCOMP) tumbled 36 percent from its November 2010 high through yesterday, spurring officials to look overseas for funds to boost the market. The Shanghai Stock Exchange completed a 10-day roadshow in North America to brief foreign investors on China’s capital markets, according to a statement by the bourse yesterday. 

The foreign exchange regulator said in May it plans to quicken QFII approvals. The China Securities Regulatory Commission in June said the government will cut the minimum requirement on assets under management to $500 million from $5 billion, lowering the entry barrier for companies seeking a license under the QFII program.