BEIJING—China increased the quota of domestic stocks and bonds that foreign investors are allowed to buy and sell by $50 billion (4.08 trillion yen) to $80 billion at the start of April, the China Securities Regulatory Commission announced.
The move was partly in response to lobbying from overseas investors, but may also be an attempt to shore up a slumping Chinese stock market.
China allows only “qualified foreign institutional investors” to deal in domestic, yuan-denominated financial products and regulates the volumes each institution can handle.
Japanese institutions, including Nomura Securities Co., are hoping that their quotas will be increased.
China’s financial markets have shown volatility in the past because of the major role played by individual investors.
The commission said it wants to encourage longer-term investment patterns by increasing the number of major overseas investors with a more strategic view.
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