China's foreign exchange authority has awarded additional investment quotas totaling US$350 million to two qualified foreign institutional investors (QFII).

 

Morgan Stanley received an investment quota of US$200 million and Goldman Sachs US$150 million from the State Administration of Foreign Exchange (SAFE).

 

Morgan Stanley and Goldman Sachs, two of the main US-based international financial service firms, both have their largest investments in China's A-share market on the Shanghai-based Baoshan Iron and Steel Company.

 

The government launched the QFII pilot program in 2003, allowing foreign institutional investors such as the UBS, Deutsche Bank, and Citigroup Global Markets Limited to engage in the securities business on the Chinese mainland.

 

Since then, the regulator has been making efforts to improve rules and regulations in a bid to open the stock market wider to foreign investment.

 

To date, 45 foreign investment institutions have been approved as QFIIs and the SAFE has awarded investment quotas totaling US$7.84 billion.

 

(Xinhua News Agency September 13, 2006)