China's State Administration of Foreign Exchange (SAFE) granted 15 banks
overseas investment quotas totaling 13.4 billion U.S. dollars last year.
The 15 banks, all with the qualified domestic institutional investor (QDII) status, include major Chinese commercial and
foreign-funded banks, such as Citibank and the Bank of East Asia, which were
approved last year to transform their Chinese branches into locally incorporated
banks registered on the mainland.
Meanwhile, 15 insurance companies were
granted overseas investment quotas of 5.17 billion U.S. dollars and one fund
management company was given a quota of 500 million U.S. dollars.
China
started the QDII program in July 2006, allowing QDIIs to raise Renminbi funds from domestic individuals and institutions and
convert them into foreign currency for overseas investment.
China has
also eased control on foreign exchange purchases by individuals. It put an
annual quota on foreign exchange purchases by individuals in May 2006, rather
than limiting the size of each purchase.
Purchases soared 220 percent
year on year during the last seven months of the year.
The annual quota for
individuals was raised from 20,000 U.S. dollars to 50,000 U.S. dollars on
February 1 this year.
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