Recently, the People's Bank of China and the State Administration of Foreign Exchange jointly issued a notice revising the Regulations on the Management of Investment Funds for Securities and Futures by Overseas Institutions in China, further optimizing the management of cross-border funds for qualified overseas institutional investors (QFIIs) and Renminbi qualified overseas institutional investors (RQFIIs). The regulations will take effect from August 26, 2024.

The main contents of the newly revised regulations include: further simplifying business registration procedures; further optimizing account management; further improving exchange management; and unifying the forex risk management model for QFIIs/RQFIIs and direct entry into the China interbank bond market (CIBM) with banks.

The regulations will help to establish clear and unified rules for the management of onshore open channels for securities investment funds, improve the convenience level of QFIIs/RQFIIs investing in China's capital markets, and further improve the quality of capital account opening.