Country limits are still in place after the recent reform of the RQFII quota rules, says a source close to China's foreign exchange regulator.
Beijing has relaxed the renminbi qualified institutional investor (RQFII) quota rules, as it did for the QFII scheme in February. It is hoped the move will address capital-repatriation hurdles to MSCI inclusion.
It is not clear how fund firms should proceed with their QFII or RQFII quota, says Manraj Sekhon, CEO and CIO of Singapore’s Fullerton Fund Management.
The deputy CEO of Hong Kong’s securities regulator said asset managers in the city should make use of offshore quota, as the city awaits an increase in its RQFII limit.
But optimism remains that the country will succeed in obtaining North America's first RQFII quota, despite allegations of Chinese hacking and spying.
China's foreign exchange regulator is to change from awarding quotas for specific products to quotas for firms, which should help to cut down on unutilised quota and be more efficient.