Domestic direct personal investment securities markets outside business allowed the pilot. Analysts pointed out that due to the lack of domestic individual investors outside the stock market investment experience, greater risk investments, investors may be more inclined to this through QDII more secure channels of investment outside the stock market. Moreover, to allow foreign direct investment in individual securities and not appropriated QDII market, the business will not start right QDII have a greater negative impact.

China’s State Administration of Foreign Exchange on August 20 announced that the pilot in Tianjin to start direct investment overseas securities markets business, individual residents in the pilot areas through relevant channels to own RMB to purchase foreign exchange or direct foreign portfolio investment. The initial pilot, investors can invest in the Hong Kong Stock Exchange is publicly traded securities varieties. Also unveiled details of the pilot program area residents direct personal investments outside the stock market provides the operational flow.

States Securities researcher Zhang Xiang said that to allow foreign direct investment in individual securities, and before opening up a qualified domestic institutional investors to invest in securities outside the mainland of China to broaden channels for the outflow of foreign exchange funds of the important measures that are opening up the capital account of the same nature.

It was learned that in 2006 was the first QDII banks, after qualifying in 2007, a securities trader, funds, insurance and trust companies overseas securities investment management-intensive pilot scheme announced. Recent Southern Fund, CAM Fund, Harvest Fund, China International Fund, the four fund companies have been eligible for QDII. The second quarter of China’s central bank monetary policy implementation report shows that as at the end of June, has approved various QDII (qualified domestic institutional investor) line of 20.5 billion US dollars, the cumulative amount of foreign investment in the use of 7.29 billion US dollars.

But some market participants that the relative through QDII investment outside the stock market, individual direct investment overseas securities more flexibility.

Copyright Fund China 2008.

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