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BEIJING, Feb. 27 (Xinhua) -- China's foreign exchange regulator has approved a bigger amount of foreign investment in the country's onshore financial market, official data showed on Monday.
As of Feb. 27, 278 Qualified Foreign Institutional Investors (QFII) have received quotas amounting 89.21 billion U.S. dollars, up from 87.31 billion dollars registered at the end of January, according to the State Administration of Foreign Exchange (SAFE).
In total, 181 overseas institutions have received quotas amounting to 541.13 billion yuan (80.75 billion U.S. dollars) under the RMB Qualified Foreign Institutional Investors (RQFII) program. It was 529.63 billion yuan a month earlier.
China's currency, the yuan, is convertible for trade purposes under the current account, while the capital account, which covers portfolio investment and borrowing, is largely run by the state in an effort to control capital flow.
To gradually liberalize the capital account, the government introduced the QFII and RQFII programs in 2003 and 2011, respectively, part of China's strategy to promote RMB's use overseas.
The QFII program represents China's effort to allow licensed foreign investors to invest in China's RMB denominated capital market.
The RQFII program allows institutional investors with offshore Renminbi deposits to invest in China's onshore market.
The RQFII program is currently open to 18 countries and regions, including Britain, Singapore, France, the Republic of Korea, Germany, Qatar, Canada, Australia and Luxembourg as well as China's Hong Kong Special Administrative Region.
BEIJING, Feb. 22 (Xinhua) -- The central parity rate of the Chinese currency, the renminbi or the yuan, weakened 40 basis points to 6.883 against the U.S. dollar Wednesday, according to the China Foreign Exchange Trade System.
In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.
The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.
Like some major currencies, the renminbi weakened against the strengthening dollar in 2016 as the U.S. economic recovery and expectations of U.S. interest rate hikes helped the greenback.
Economists believe the yuan will see less depreciation pressure in the long run and will remain generally stable in the short term due to linger.