KUALA LUMPUR: Malaysian investors have been offered a RM33.5 billion breakthrough into the Chinese capital market, as announced by Prime Minister of China Li Keqiang today.
Speaking at the China-Malaysia High Level Economic Forum, Li announced a Renminbi Qualified Foreign Institutional Investors (RQFII) quota of 50 billion yuan (RM33.5 billion).
Prime Minister's economic envoy to China Tan Sri Ong Ka Ting explained it was a significant breakthrough for Malaysian companies into a usually restrictive Chinese capital market, following positive bilateral talks during the Asean Summit and East Asia Summit which ended here yesterday.
"It actually means that they operate through Hong Kong, where Malaysian companies can channel their funds through Hong Kong to buy equities in China’s mainland," said Ong.
The RQFII is a Chinese government effort to selectively allow foreign institutionalised investment in its renminbi-denominated capital market.
"Normally, there are a lot of restrictions to trading in China, such as (in the capital market) trading in A-shares. Now, RQFII quota is provided for Malaysia," said Ong.