Main provisions
- First, implement the provisions about lifting domestic securities investment quota limits placed on qualified foreign institutional investors (QFIIs) and RMB qualified foreign institutional investors(RQFIIs) (hereinafter collectively referred to as qualified investors or QIs), and carry out registration management over qualified investors' cross-border fund transfer and exchange.
- Second, make it clear that qualified investors may open one or multiple special QI accounts at the custodians based on their business registration certificates granted by the State Administration of Foreign Exchange according to their investment and fund transfer needs.
- Third, implement integrated management over RMB and foreign currencies, and permit qualified investors to independently choose the currency and time for inward fund transfer.
- Fourth, greatly streamline the remittance procedures of qualified investors' domestic securities investment income, rescind the requirements about provision of documents including special auditor's report of investment income and tax record filing form offered by Chinese CPAs, and ask for replacement of these documents with letter of commitment on tax payment.
- Fifth, lift the limits on number of custodians, permit single qualified investor to entrust multiple domestic custodians, and implement the principal reporter system.
- Sixth, refine the requirements about qualified investors' foreign exchange risks and investment risks pertaining to domestic securities investment.
- Seventh, require strengthened in-process and ex-post supervision by the People's Bank of China and the State Administration of Foreign Exchange.
Target group
Foreign institutional investors governed by the Measures for the Administration of Domestic Securities and Futures Investment by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors refer to QFIIs and RQFIIs that have made investment in domestic securities and futures market as approved by China Securities Regulatory Commission.
Policy implementation
The Measures for the Administration of Domestic Securities and Futures Investment by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors took effect on June 6, 2020.