State Administration: Dollars and Capital Flows

state administration: Up till now, the country has approved 4.74 billion US dollars of quotas for 13 QFII investors this year, exceeding the total quota in 2018, according to Global Times China. China approved 24 billion US dollars of quotas for 12 RQFII investors during the first four months, more than half of the total quota in 2018. The State Administration of Foreign Exchange SAFE also approved 9.7 billion yuan 1.43 billion US dollars of quotas for five Renminbi Qualified Foreign Institutional Investors RQFII last month. 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 manage capital flows in and out of the country. China's determination of expanding opening-up and the ongoing reform measures have made China's financial market increasingly appealing to overseas investors, according to a statement on the SAFE's website. The QFII and RQFII programs, introduced in 2003 and 2011 respectively, allow overseas institutional investors to move money into China's capital account for investment. (news.financializer.com). As reported in the news.