By Shane McGinley
China is considering increases quotas for foreign investors, currently set at US$1bn
Abu Dhabi's sovereign wealth fund is one of a number of foreign financial institutions looking to increase their investment in China as the Asian superpower mulls plans to increase the maximum value overseas entities can invest.
Quotas are individually capped at US$1bn under the Qualified Foreign Institutional Investor (QFII) scheme, the main channel for foreign investment in Chinese stocks and bonds since 2003.
The country's securities watchdog and foreign exchange regulator are in talks on the prospect of increasing the cap, the China Securities Journal reported, without saying when or by how much the quota may be raised.
The report claimed Abu Dhabi Investment Authority was among 37 QFIIs which have applied to increase their quotas by a combined US$12.54bn.
A further 33 investors, worth a combined US$10.25bn, are also applying for quotas for the first time, the report added.
According to Reuters, China said in April it will raise the total QFII quota by US$50bn to US$80bn as the current programme nears its limit.
As of April 16, China had approved a combined QFII quota of US$25.19bn in investment by 129 investors.
China is considering setting up a system allowing foreign pension funds to invest in its capital markets without participating in the QFII scheme, the Wall Street Journal reported on Tuesday, without giving details.
* With Reuters