China to scrap foreign investment quotas to further open up financial sector

China decided to scrap quota restrictions on two major inbound investment schemes in a bid to further facilitate foreign institutional investors' participation in the country's financial market, authorities said Thursday.

China will remove quotas on the dollar-denominated qualified foreign institutional investor (QFII) scheme and its yuan-denominated sibling, RQFII, according to the provisions issued by the People's Bank of China and the State Administration of Foreign Exchanges, which will take effect on June 6.

QFII will be allowed to freely choose in which currency and when they remit money to the country.

China will also simplify outward remittance procedures for QFII's securities investment gains and lift other restrictions.

In recent years, China has been trying to gradually open up its financial sector to attract more foreign capital.