SHANGHAI: China is planning to expand an outbound investment scheme to its southern province of Guangdong, state media reported on Tuesday, as the country seeks to balance pressure from rising capital inflows.
China’s State Administration of Foreign Exchange (SAFE) has given its approval for a Qualified Domestic Limited Partner (QDLP) trial scheme in Guangdong, not including the city of Shenzhen, with a quota of $5 billion, the government-backed Securities Times said on its website.
State media reported in October that China would expand the QDLP scheme beyond trials in Beijing and Shanghai to meet investors’ need for global asset allocation.
The expansion is China’s latest move to balance the pressure of rising inflows, which have boosted the yuan and prompted officials to look at ways to manage them. Index provider FTSE Russell on Monday gave its final approval for the inclusion of Chinese sovereign bonds in its flagship bond index, a move that is expected to boost inflows further.
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