SAFE Raises Shanghai/Shenzhen Outbound Investment Quota to $10bn


China’s State Administration of Foreign Exchange is lifting the quota for outbound foreign investment trials involving qualified institutions in Shanghai and Shenzhen.

SAFE announced on 14 April that it will raise the outbound foreign investment quotas for qualified domestic limited partnerships (QDLP) and qualified domestic investment enterprises (QDIE) situated in Shanghai and Shenzhen to USD$5 billion respectively, for a total quota of $10 billion.

The forex regulator first introduced trials for QDLP’s and QDIE’s in the two cities host to China’s bourses back in 2013, as part of efforts to actively support “capable domestic institutions engaging in various forms of foreign investment.”

SAFE said that the next move would be to work with relevant departments and local governments in China to further improve QDLP/QDIE macro-prduential regulation, on the basis of the balance of payments, industrial development dynamics as well as foreign investment conditions.