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Shanghai stocks rally on RQFII degree
Aggregated Source: Shanghai Daily: Business

SHANGHAI stocks rose the most in a week yesterday after China's central bank released a detailed guideline for overseas institutions to invest in the domestic equity market in yuan.

The Shanghai Composite Index jumped 1.44 percent to 2,205.5 points, rebounding from a four-month low on Thursday.

The People's Bank of China unveiled a technical guideline on the Renminbi Qualified Foreign Institutional Investor pilot scheme.

The new guideline indicates China will soon restart the approvals of RQFII quotas, a CITIC Securities report said. Chinese regulators have yet to approve RQFII quotas since January 24. With an untapped quota of 200 billion yuan (US$32.5 billion), analysts said the new approvals will boost the market liquidity.

CITIC Securities Co added 3 percent to 12.86 yuan. Haitong Securities Co jumped 4 percent to 11.20 yuan.

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Copyright Shanghai Daily: Business