China RQFII quota expansion to bolster stock market: experts

BEIJING, Nov. 14 (Xinhua) -- China's latest move to expand the investment quota under its RMB Qualified Foreign Institutional Investors (RQFII) program is likely to shore up investors' confidence in the yuan-denominated A-share market, experts said.

The China Securities Regulatory Commission, the People's Bank of China and the State Administration of Foreign Exchange have announced to increase the investment quota under the RQFII pilot program by 200 billion yuan (31.8 billion U.S. dollars). It brings the total quota to 270 billion yuan.

Li Daxiao, director of the Yingda Securities Research Institute, said the quota expansion is favorable news for China's A-share market. He said it will facilitate more overseas capital to enter the market.

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