October 21, 2020
BEIJING (Reuters) – China plans to expand several outbound investment schemes, state news agency Xinhua said on Wednesday, following a steady strengthening in the yuan currency against the dollar.
Fresh quotas worth $10 billion will be issued in several batches under the outbound Qualified Domestic Institutional Investor (QDII) scheme, Xinhua reported, citing an unnamed official at the foreign exchange regulator.
China will also expand outbound schemes Qualified Domestic Limited Partner (QDLP) and Qualified Domestic Investment Enterprise (QDIE), which are being trialled in Beijing, Shanghai and Shenzhen city, Xinhua reported, without giving a timeline.
The upcoming moves will further meet onshore investors’ need to allocate assets globally, Xinhua said.
The yuan ended the domestic session at a more than two-year high against the dollar on Wednesday, lifted by firmer central bank guidance and recent data showing a sustained recovery in the world’s second-largest economy.
In September，the State Administration of Foreign Exchange (SAFE) granted fresh quotas under its outbound QDII scheme for the first time since April 2019.
(Reporting by Kevin Yao and Samuel Shen. Writing by Roxanne Liu; Editing by Catherine Evans)