Chinese Proposal To Lift Foreign Investment Caps Seen As Limited Step

摘要

A proposal released last week by China's Securities Regulatory Commission (CSRC) to allow qualified foreign institutional investors (QFIIs) greater access to the Shanghai and Shenzen stock markets is being seen by Washington observers as a limited step that has little practical effect but could portend greater future reforms. The proposal by the CSRC, which was released in a Chinese language version on June 20 for public comment, would make two key regulatory changes. First, it would lower the capital eligibility requirements for QFIIs to $500 million down from the current $5 billion. And second, it would also allow QFIIs to hold 30 percent of a company's available public stock - or "float" - up from the 20 percent currently permitted.