- CNTV English - CCTV News

Homepage > News > Biz >

Trial program for offshore funding

01-18-2011 14:40 BJT

HONG KONG - The Chinese mainland securities regulator will begin a trial program that allows local fund houses to raise money offshore for investment in the domestic financial market, two sources said.

At least 80 percent of the money raised will have to be invested in the domestic bond market, said the sources who were familiar with the matter but were not authorized to publicly disclose the details.

"The move is based on the overall financial trend of the yuan increasingly becoming more international," one of the sources said on Monday. "The banks are already moving forward in this aspect and it's time for brokerages and securities companies to follow suit."

Mini-QFII stakes are named after the eight-year-old QFII (Qualified Foreign Institutional Investor) program, which allows foreign fund managers to invest in Chinese stocks and bonds on behalf of overseas investors using money raised overseas.

Chinese brokerages with international arms, such as Guotai Junan Securities, are expected to participate in the mini-QFII program.

"Most of the money will be invested in the bond markets to ensure the stable development of the trial program," another source said.

The Chinese mainland has been trying to make its currency more international by establishing Hong Kong as an offshore yuan center.

China will also try to come up with new ways to use the currency beyond current options, which are now largely limited to depositing money into offshore yuan accounts and buying yuan-denominated bonds issued outside the country.

Editor:Xiong Qu |Source: China Daily

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program