China mulls lowering foreign fund barrier
HONG KONG (MarketWatch) - China is considering changes to its Qualified Foreign Institutional Investors (QDII) program that will make it easier for foreign funds to invest in its domestic stock markets, according to a statement by China's securities regulator. Amendments include lowering the entry barrier such that the minimum requirement on assets under management will fall to $500 million from $5 billion for most institutional investors, while other, larger institutions, will see their entry barriers on funds under management cut to $5 billion from $10 billion, according to a statement filed Wednesday on the website of the China Securities Regulatory Commission. The QFII requirement of $500 million under management applies to foreign equity funds, insurers and pension funds. Commercial banks and securities companies will see their funds' size requirement cut $5 billion, according to the statement.