The latest approval from China securities regulatory commission, IMF identity the RMB is qualified foreign institutional investor (RQFII) programme.

Under the RQFII(RMB Qualified Foreign Institutional Investors) mechanism, the Chinese government allows Foreign Institutional Investors to invest the Foreign exchange settlement within the approved quota in the domestic securities market.

China announced the RQFII program in August 2011, and until February 27, more than 200 foreign institutions have been granted the RQFII investment qualification, with a total quota of 660.472 billion yuan.

The implementation of the RQFII, QFII and QDII regimes is a major step in China’s two-way capital market opening and this will help accelerate the internationalization of RMB.