Business Maverick: China Scraps Foreign Investment Limits

Global funds no longer need approvals to purchase quotas to buy Chinese stocks and bonds, the State Administration of Foreign Exchange said in a statement on Tuesday. It removed the $300 billion overall cap on overseas purchases of the assets, about two-thirds of which remain unused.

”It is certainly a positive and it underscores the fact that the trade war with the U.S. has a positive effect on China – it is pushing its reform agenda more than expected,” said Adrian Zuercher, head of asset allocation for Asia Pacific at UBS Wealth Management. “We might not see immediate inflows, but the cap was an important roadblock for institutional investors which has now been removed.”

The process of granting overseas investors similar ease of access as local players started in 2000, when China was negotiating entry into the World Trade Organization. It picked up pace last year after U.S. President Donald Trump attacked China as a one-sided beneficiary of global commerce. Separately, the country has allowed foreign banks and insurers to take controlling stakes in their local ventures. UBS Group AG, JPMorgan Chase & Co. and Nomura Holdings Inc.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

China to scrap quotas on two foreign investment schemesThis comes as a weakening yuan and rising outflows prompt Beijing to attract more foreign capital, however, the move may be largely symbolic
Source: BDliveSA - 🏆 12. / 63 Read more »

China to scrap quotas on two foreign investment schemesThis comes as a weakening yuan and rising outflows prompt Beijing to attract more foreign capital, however, the move may be largely symbolic
Source: BDliveSA - 🏆 12. / 63 Read more »

BUSINESS MAVERICK OP-ED: Outgoing European Central Bank chief’s dangerous farewellMario Draghi risks deepening the eurozone’s problems in the final weeks of his eight-year term as president of the European Central Bank. He has promised that the bank will reduce interest rates further to spur the eurozone economy. But policymakers have room for only modest rate cuts, which will do little to boost growth – and will put potentially intolerable pressure on the eurozone’s fragile banks.
Source: dailymaverick - 🏆 3. / 84 Read more »

BUSINESS MAVERICK ANALYSIS: Emerging markets given a reprieve ahead of central bank meetingsEmerging markets, including South Africa, have been lifted by the tentative return of risk appetite to global financial markets. But much will depend on developed market central bank monetary policy moves over the next couple of weeks. With expectations high, they have a lot to deliver if they don’t want to disappoint.
Source: dailymaverick - 🏆 3. / 84 Read more »