BEIJING -- China is considering allowing individuals to directly invest in overseas markets, a central bank officialrevealed on Thursday.
Currently, only institutions can invest abroad under a plan called "Qualified Domestic Institutional Investors" (QDII).More than 100 institutions are qualified at present, with a combined quota of $76.8 billion.
Wang Dan of the People's Bank of China (PBOC) said the central bank is working on a QDII2, to allow Chinese peopleto trade stocks on foreign bourses and hold other assets. In addition, the PBOC is considering "RMB QualifiedDomestic Institutional Investors" (RQDII), which means institutions would be able to use the Chinese yuan to investabroad rather than convert into local currency.
Both outbound and inbound investment across China's border are still subject to many restrictions as the country'scapital account is not open and the yuan not fully convertible, though cross-border use of the yuan is being graduallyliberalized.