China raises foreign fund limits to $1 blnChina's foreign exchange regulator said it had raised the limits on securities investment by foreign institutions to one billion dollars from 800 million dollars starting Monday. The rules, which govern the Qualified Foreign Institutional Investor Foreign Institutional Investor (FII) is used to denote an investor - mostly of the form of an institution or entity, which invests money in the financial markets of a country different from the one where in the institution or entity was originally incorporated. , or QFII QFII Qualified Foreign Institutional Investors programme, were published on the State Administration of Foreign Exchange The State Administration of Foreign Exchange of the People's Republic of China is an administration tasked with drafting rules and regulations governing foreign exchange market activities, and managing foreign exchange reserves, for the People's Bank of China. website over the weekend. The QFII programme, launched in 2003, is the main way for foreign institutions to invest in yuan-denominated equities in China, where the authorities keep strict control over capital flows. The new rules are aimed at "attracting mid- and long-term investments," the foreign exchange watchdog said. The agency also slashed the lockup period lockup period The time during which employees and other early investors are prohibited from selling stock in a newly listed company. Investment banks that bring the securities to market establish lockup periods to protect investors in a new issue from large on investments made by qualified foreign pension funds, insurance companies, and mutual funds down to three months from one year previously. China agreed in talks with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. in late 2007 to raise the QFII ceiling for the combined quotas to 30 billion dollars from 10 billion dollars, but total approvals so far were about half that amount at 15 billion. 
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