The People’s Bank of China (PBOC) has given the go-ahead to the Renminbi Qualified Domestic Institutional Investor (RQDII) programme.
The programme will help some domestic institutional investors to purchase offshore yuan products, and will not be restricted by quotas, reports Shanghai Securities News.
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The Chinese central bank however, did not divulge details regarding which institutions would be eligible to participate.
According to a PBOC official, "The RQDII scheme will promote the outflows of the yuan into foreign markets, quicken the pace for foreign markets to launch yuan financial products and attract more international investors to participate in their trading."
Recently, the central bank was studying the RQDII programme, which will allow domestic investors to invest overseas using the Chinese currency.
With the existing Qualified Domestic Institutional Investor scheme under a quota system, mainland institutions have already received the green light to invest in foreign exchange products in overseas markets.
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By GlobalDataAt the same time, PBOC is also studying a Qualified Domestic Resident programme, which will enable Chinese individuals to directly invest in yuan products outside the mainland.
