President Guoshuqing giving speech at Asian Financial Forum

Guo Shuqing, President of the China Securities Regulatory Commission (CSRC) announced that China is considering expansion of RMB qualified foreign institutional investor (RQFII) to RMB qualified foreign individual investor (RQFII2), at the Jan. 14 Asian Financial Forum. The intention would be to encourage more market participants of different levels to invest in the A-share market.

CSRC claimed in November 2012 that an accord had been reached in principle that a 200 billion yuan RQFII quota would be added upon the original 70 billion yuan RQFII quota, and it would be implemented step by step. Meanwhile, rules of implementation were under revision to further expand scale of institutions and loosen investment percentage restrictions.

During the forum, Guo also explained that he hopes that current QFII and RQFII investment accounts, representing 1.5 percent to 6 percent of the A-share market, may be expanded by 9 or 10 times in the future.

President Guo also disclosed that mainland China will introduce the qualified domestic individual investor (QDII2) at the proper time. Mechanisms have also been formed to turn B-shares to H-shares now, with the CSRC having set up a united team to take care of it.