Since its launch in 2002, the Qualified Foreign Institutional Investor (QFII) program has been the principal means for foreign investors to invest directly in the securities markets of Mainland China. In an effort to facilitate increased foreign participation in China’s securities markets, the China Securities Regulatory Commission (CSRC) recently adopted rule changes that will make QFII quotas more flexible and more accessible to a larger audience of foreign investors. As discussed in more detail below, the primary impact of these reforms is to: (i) open the QFII program to a wider array of financial services companies by lowering the qualification requirements applicable to QFIIs; and (ii) facilitate the investment activities of QFIIs by giving them greater investment latitude and improving convenience of account management.

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