Dec. 17, 2009 (China Knowledge) - The China Securities Regulatory Commission, the country's stock market watchdog, announced that it issued licenses to three foreign financial companies last month which allows them to invest in the domestic capital market under the Qualified Foreign Institutional Investor scheme.

The three firms are Japan-based Nomura Asset Management Co, U.S.-based BNY Mellon Management International Ltd, and Manulife Asset Management (Hong Kong) Ltd. So far, 91 foreign institutions have been granted the QFII status in China.

In October, China's State Administration of Foreign Exchange raised the upper limit on securities investment by a single qualified foreign institutional investor to US$1 billion, from the previous US$800 million. Meanwhile, the lock-up period for foreign insurers, pension funds and mutual funds, was also shortened to three months from one year previously.

The Chinese government launched the QFII program in 2003. It allows foreign investors to trade China’s domestically listed RMB-denominated A shares.