State Administration of Foreign Exchange Xiao Sheng: Research and optimize policies for qualified foreign institutional investor (QFII) cross-border capital flows to enhance the facilitation of foreign investment in the domestic capital market

Xiao Sheng, Director of the Capital Project Management Department at the State Administration of Foreign Exchange, stated in the 2026, Issue 3 of China Foreign Exchange that in 2026, foreign exchange management of capital projects will focus on improving the quality of opening up in capital projects, aligning with the higher-level opening-up goals of the 14th Five-Year Plan, and will steadily promote high-level institutional opening in areas such as direct investment, cross-border financing, and securities investment. The policy supply for cross-border investment and financing facilitation will be strengthened to effectively enhance the quality and efficiency of serving the real economy. The two-way opening of financial markets will be advanced in an orderly manner. Research will be conducted to optimize the cross-border capital policies for Qualified Foreign Institutional Investors (QFII), improving the convenience of foreign investment in domestic capital markets. The issuance of quotas for Qualified Domestic Institutional Investors (QDII) will continue in an orderly manner to meet the reasonable needs of domestic investors for foreign securities investment. Coordination with relevant departments will promote the construction of connectivity mechanisms such as Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, and Bond Connect, continuously enhancing the level of two-way opening of financial markets.