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China has signed a memorandum of understanding with Malaysia, that will allow Chinese banks to invest in Malaysian stocks, bonds and mutual funds.
China has inked similar pacts under its Qualified Domestic Institutional Investor or QDII scheme, with many other countries and regions. They include the U.S., Britain, Japan and Singapore.
By the end of March, China has approved quotas totaling 64.3 billion US dollars for 76 qualified intuitional investors.