Outwards and upwards

Author: | Published: 1 Aug 2007

China is receiving continued international political and economic pressure to address its trade and currency imbalances, and domestic pressure to regulate the dizzying ascent of the domestic Chinese stock markets and the appreciating valuation of the renminbi yuan. This serves as impetus for the Chinese regulators to develop channels of overseas investment for domestic investors.

In mid-2007, China's qualified domestic institutional investors (QDII) regime, which permits domestic funds in China to be invested into overseas assets, reached a new stage of development. Provisional regulations were released that provide much-needed clarifications to the regime regarding QDII banking products and QDII investment fund products.

The CBRC (which governs QDII banking products) released its General Office Circular on Adjusting the Scope of Commercial Banks Conducting Overseas Wealth Management Business on behalf of Clients (the CBRC Adjustment Regulations). The CSRC (which governs QDII investment funds products) also released its Provisional Measures for the Administration...