FTSE China A50 Futures Turn Positive After 1% Drop Earlier

Tiger Newspress03-30 11:26

FTSE China A50 futures turned positve after 1% drop earlier.

China raised the cap on institutional investors’ overseas securities purchases by the most since 2021, aiming to advance financial opening and meet greater domestic demand for offshore investment.

The investment quotas for China’s Qualified Domestic Institutional Investor program, or QDII, climbed to $176.17 billion at the end of March, up from $170.87 billion a month ago, according to data released by the State Administration of Foreign Exchange on Friday. The $5.3 billion addition — the first hike since June last year — marks the largest increase since 2021, Bloomberg-compiled data shows.

The QDII program allows local institutional investors who meet certain conditions to buy foreign assets within the prescribed limit. Relative stability in the Chinese yuan and local markets amid the Iran war is giving Beijing breathing room to loosen capital controls and expand the currency’s global role.

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