To further reform forex regulations on QFII/RQFII, the People’s Bank of China (“PBOC”) and the State Administration of Foreign Exchange (“SAFE”) have planned to amend the Provisions on the Administration of Funds of Qualified Foreign Institutional Investors for Domestic Securities and Futures Investment (“Current Rules”) and formulated a consultation paper (“Consultation Paper”) for public comment. The deadline for feedback comments is December 10, 2023.

 

1.To Further Simplify Registration Procedures

 

As before, QFII/RQFII after obtaining license from the China Securities Regulatory Commission and before commencement of investment shall register with SAFE through the main PRC custodian engaged by it. However, the approval by SAFE will be canceled.

With the approval by SAFE canceled, the main PRC custodian can complete the registration directly.