China will grant additional quota for funds to invest in securities overseas on a regular basis, Caixin reported, in what would be the biggest relaxation to capital controls in years. The Qualified Domestic Institutional Investor quota will be bumped by between US$2 billion and US$3 billion every quarter, Caixin reported on Wednesday citing an official from the State Administration of Foreign Exchange, Bloomberg said. The QDII quota was last at US$107 billion in September, according to SAFE. SAFE expanded the quota by US$3 billion in late September -- the first quota enlargement since April 2019 -- just as the yuan completed its best quarter in 12 years versus the dollar. China has not widened the quota for two consecutive months since 2018, and it hasn’t done so regularly since before the yuan was devalued in 2015.

Source: The Standard October 22, 2020 05:03 UTC