Softer FX rules for China QFIs set to boost CNY competition

State
Street
expects
the
relaxation
of
restrictions
on
FX
trading
by
overseas
funds
using
China’s
Qualified
Foreign
Investor
(QFI)
programme
to
make
onshore
renminbi
(CNY)
pricing
more
competitive
and
create
opportunities
for
dealers
that
are
not
registered
onshore
as
local
custodians.

New
proposals
in
a
consultation
released
by
the People’s
Bank
of
China
and
the
State
Administration
of
Foreign
Exchange
will
allow
foreign
investors
buying
Chinese
securities
via
the
QFI
scheme
to
trade
and
settle