Chinese big-money investors, who are sitting on a mountain of savings, could soon come stampeding into the Indian and other global stock markets, after the government unleashed them on the world on Friday in an effort to cool down China’s overheated markets.
The China Banking Regulatory Commission unveiled regulations permitting Qualified Domestic Institutional Investors (QDII) to invest in overseas stock markets, subject to some limits.
This means that private investors in China with a minimum investment of 300,000 yuan ($40,000 or Rs 16 lakh) each can channel their money through QDIIs into stocks on overseas exchanges. Until Friday, they could only invest in dowdy fixed-income and money-market products, which offer low returns.
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