China sets US$1.5-bln QDII quota for 2 fund firms

Published: 27 Oct 2009 00:10:35 PST

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Oct. 27, 2009 (China Knowledge) - The State Administration of Foreign Exchange recently decided to allow two domestic fund companies to invest up to US$1.5 billion overseas under the qualified domestic institutional investor program, the Shanghai Daily reported.

E Fund Management Co's quota is US$1 billion, while China Merchants Fund Management's quota is US$500 million.

These are the first quotas to be established in 17 months. In May 2008 the foreign exchange regulator granted Bank of Communications Schroder Fund Management permission to invest up to US$2 billion as a QDII.

More Chinese fund firms are expected to obtain investment permission in the coming weeks, said sources close to the SAFE.

Statistics show that the SAFE has approved up to US$55.95 worth of investment by 56 QDIIs.