Bloomberg News

China Brokers Plan Outward Investor Rules, Securities Times Says

April 09, 2012

The Securities Association of China asked regulators to let some domestic investors trade foreign stocks and bonds directly, the Securities Times reported today, without saying where it got the information.

Under the new plan, securities companies with a Qualified Domestic Institutional Investor, or QDII, license would be allowed to broker direct transactions by qualified Chinese investors in overseas capital markets using investment quotas granted under the QDII program, the Chinese-language newspaper reported.

Policy restrictions have impeded private financial investments abroad and curbed the nation’s influence in global financial markets, the State Administration of Foreign Exchange said last month. More than 40 brokerages and fund management companies had been granted QDII licenses as of Oct. 31 after the program was introduced in 2007 to allow money pooled from local citizens to trade in foreign securities, the China Securities Regulatory Commission said in a Dec. 1 statement on its website.

The proposal by the association of more than 100 securities brokerages can better use the existing QDII quotas, help companies expand overseas business and meet growing needs of Chinese investors, the report quoted an unnamed brokerage executive as saying.

China’s new overseas stock investments dropped 49 percent last year to $10.1 billion as volatility in U.S. and European markets made Chinese investors more risk averse, SAFE said in a March 31 report on its website.

Phone calls to the association’s Beijing-based general office, which handles media inquiries, went unanswered.

To contact the Bloomberg News staff on this story: Zhang Dingmin in Beijing at +86-10-6649-7576 or dzhang14@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net


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