PBOC governor calls for raising QDII, QFII quota

China should increase the qualification and quota for QDII and QFII investors to help them with their activities, Zhou Xiaochuan, governor of the People's Bank of China, said on Tuesday.

Administrative approval procedures for QDII and QFII qualification and quota shall be eliminated "when conditions are ripe," Zhou added. He made the remarks while attending the third Sino-French Financial Forum.

In 2002, China launched the Qualified Foreign Institutional Investor (QFII) scheme to allow licensed foreign investors to use offshore yuan for investing in the country's capital market.

The Qualified Domestic Institutional Investor (QDII) scheme was launched in 2006 to allow domestic funds to be invested abroad.

Reforms to further liberalize interest rates, deposit rates in particular, are being considered, Zhou said.

China will relax market access to allow private economy to set up small and medium sized financial institutions on the condition of enhanced administrative supervision, he added.