FINANCE

China to Overhaul Cross-Border Investment Rules, Issue New QDII Quotas

Published: Jun. 18, 2026 3:13 a.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Zhu Hexin, head of the State Administration of Foreign Exchange, at the opening of the 2026 Lujiazui Forum in Shanghai on June 17, 2026. Photo: VCG

China’s foreign exchange regulator plans to comprehensively reform rules governing cross-border foreign direct investment and issue new outbound investment quotas to facilitate global capital flows.

Zhu Hexin, administrator of the State Administration of Foreign Exchange (SAFE), announced the upcoming policy package at the Lujiazui Forum in Shanghai on Wednesday, adding that the regulator will streamline outbound direct investment and foreign debt exchange management.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Save an extra $50. Introductory offer for new readers. Subscribe now.

Share this article

Open WeChat and scan the QR code

Explore the story in 30 seconds

China’s SAFE plans to reform cross-border FDI rules and issue new QDII quotas to ease outbound investment restrictions.
Regulator will pilot flexible trade settlements, offshore reinsurance investments, and expand cross-border cash pooling for multinationals.
Authorities aim to shift from approval-based to transparent, rules-based capital management, aligning with international standards.

AI generated, for reference only

Before June 18, 2026：: A severe shortage of outbound quotas triggered widespread purchase restrictions on mutual funds, leaving many domestic investors unable to buy overseas equities.

2026：: SAFE plans to issue new Qualified Domestic Institutional Investor (QDII) quotas and implement a structural shift in cross-border capital management, moving from narrow approval channels to a transparent, rules-based framework. Authorities will align domestic securities trading rules with international standards, relax restrictions for well-managed entities, and enhance coordination between foreign exchange and local currency policies to support offshore yuan market and foreign exchange derivatives.

June 18, 2026：: SAFE Administrator Zhu Hexin announced a comprehensive policy package at the Lujiazui Forum, including reforms to cross-border foreign direct investment rules. China's top financial regulators and the Shanghai municipal government jointly issued an action plan to develop the city's offshore financial services.

AI generated, for reference only