China said Tuesday that it has decided to scrap a yuan-denominated quota restrictions for foreign institutional investors, enabling them to invest in capital markets in the mainland without hard hurdles.
The move is apparently aimed at boosting investment in China as the world's second-largest economy has been slowing down against a backdrop of tit-for-tat tariff escalation with the United States, economists say.
So far, Beijing has allowed foreign institutional investors, approved by the Chinese authorities, to invest a certain amount of money in stock and bond markets in the Shanghai Stock Exchange and other bourses in the mainland.
The investment quota regulations for "Qualified Foreign Institutional Investors" and "Renminbi Qualified Foreign Institutional Investors" will be abandoned, China's State Administration of Foreign Exchange said in a statement.
The latest measure would "drastically improve convenience of investors," the administration said.