The People's Bank of China issued a document on May 2, 20 13, clarifying the contents of RQFII's opening a bank account and investing in the inter-bank market in China, clearing the technical obstacles for RQFII's expansion, and the next phase of RQFII's expansion will enter a substantive stage.

The central bank made it clear that RQFII institutions should open RMB basic deposit account in overseas institutions as required. After opening a basic deposit account, a domestic commercial bank with qualified investor custody qualification shall be selected to open a special deposit account for the settlement of trading funds in the exchange market and a special deposit account for the settlement of trading funds in the inter-bank bond market for investment in the exchange securities market and the inter-bank bond market respectively. Those who participate in stock index futures trading may open a special deposit account for stock index futures margin settlement at the futures margin depository bank.

When RQFII opens the above-mentioned three types of special deposit accounts, it should distinguish between its own funds and customer funds providing asset management services. Where an open-end fund is established, each open-end fund shall open a separate account. The central bank stipulates that it is not allowed to transfer funds between RQFII special deposit accounts and other accounts, self-owned fund accounts, customer fund accounts and open-end fund accounts, and different open-end fund accounts. Cash cannot be withdrawn from the special deposit account.

On March 20 13, the CSRC, the central bank and the foreign exchange bureau jointly issued the revised pilot measures for qualified foreign institutional investors to invest in RMB domestic securities, allowing more overseas financial institutions to invest RMB funds raised overseas in the domestic capital market, and relaxing the restrictions on the investment scope of RQFII.

RQFII pilot started in February 20 1 165438. The initial participating institutions were limited to domestic fund management companies and Hong Kong subsidiaries of securities companies. In February last year, the CSRC, the central bank and the foreign exchange bureau decided to increase the investment quota of RQFII by 200 billion yuan, and the total pilot amount reached 270 billion yuan.