QFII quotas hit monthly record with US$2.75b October grants (2)

"The China Securities Regulatory Commission has recently speeded up approval of foreign investment quotas to attract long-term investors," said Chen Li, a chief analyst with UBS Securities.

Chen said the actual investment through the QFII and RQFII programs now amounts to about 300 billion yuan, accounting for less than 4 percent of the market size of the mainland's capital market.

He said China has room to expand the amount of foreign investment fourfold, but the process may take another 15-20 years.

By the end of October, 192 foreign institutions had been awarded a combined US$33.6 billion in quotas, less than half of the US$80 billion ceiling of the QFII program, data released by SAFE showed.

A total of 21 institutions received 48 billion yuan in quotas under the RQFII program, leaving 22 billion yuan available quota unclaimed.

Guo Shuqing, head of the China Securities Regulatory Commission, said on Sunday that China may "soon" nearly quadruple the RQFII quota from the current 70 billion yuan to 270 billion yuan.

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