China awards US$ 300m quota to 2 QFIIs

China's foreign exchange authority has awarded a total quotas of 300 million US dollars to two qualified foreign institutional investors (QFII), Goldman Sachs Asset Management International and Government of Singapore Investment Corporation Pte Ltd.

The State Administration of Foreign Exchange said it gave a quota of 200 million US dollars to Goldman Sachs as a QFII, and 100 million US dollars to the Singaporean company.

Goldman Sachs was given the title of QFII last month by China's Securities Regulatory Commission.

China increased its total quota for QFIIs by 6 billion US dollars earlier this year, bringing the total to 10 billion US dollars.

To date, overseas investors are allowed to hold tradable shares only through qualified institutional foreign investors (QFII).

The commission said that QFIIs have turned out to be playing a positive role in supporting the reform and innovation of China's capital markets since China introduced QFII on a trial basis on Dec. 1, 2002.

QFIIs has also brought about new concept of investment and improving corporate governance of Chinese listed firms to China, the commission said.

Source: Xinhua