After easy-money assurances failed to prevent a swoon in the Chinese stock market, one imagines the government is now happier than ever to get more liquidity pumping in.
Thus they’ve just increased investment quota’s for foreign funds by 25%. This was in the works for some time, but you have to admit the timing of this decision was impeccable.
Bloomberg: “We have raised the limit for each fund to $1 billion within the current total $30 billion size of all funds to encourage more good investors to come in,” said Chu Yumei, deputy head of the capital account department at the regulator.
SAFE will shorten the lockup period for some medium and long-term QFII funds such as pension funds and insurance funds to three months, according to the statement
This comes on the heels of repeated assurances that tighter financial regulation is a long ways off. Buyers beware.