BEIJING – The State Administration of Foreign Exchange (SAFE) recently approved Minsheng Bank’s application for 500 million US dollars of quota of investment in foreign exchange to invest abroad on agency of clients as qualified domestic institutional investor (QDII). The new approval has made the total amount of forex quota approved for QDII business exceed 12 billion US dollars.

China has been actively encouraged QDII to undertake overseas investment business since it allowed domestic institutions and individuals to entrust domestic commercial banks to invest in financial products abroad from April 17, 2006.

By the end of October, SAFE has approved applications of more than 10 banks including the Industrial and Commercial Bank of China, the Bank of China, for forex investment quota as QDII.