China has scrapped the quota of its two leading inbound investment programmes, but the move appears unlikely to give its onshore capital markets a shot in the arm.
The de facto central bank's commitment to an IFC programme underscored its interest in infrastructure investing, following its opening of an office dedicated to such funding last year.
On Friday China's securities regulator removed the asset allocation limits under the two cross-border investment scheme, in a bid to boost foreign flows.
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.
The Monetary Authority of Singapore is the first central bank to assign renminbi assets as foreign reserves. Other central banks are tipped to follow suit and boost their RMB investments.
The Chinese authorities have moved to address outstanding investor concerns over access to the mainland interbank bond market by issuing guidance and rules on capital remittance.