China to raise foreign fund limits to one bln dlrsChina's foreign exchange regulator said Friday it planned to raise the limits on securities investment by foreign institutions to one billion dollars from 800 million dollars. The draft 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. The QFII programme, launched in 2003, is the main way foreign institutions can 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, adding it would accept opinions on the changes over the next two weeks. 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. The changes come after China's benchmark stock index slumped 6.74 percent on Monday, the biggest single one-day fall in 14 months due to concerns over slower lending and a new share supply glut glut pronounced as rut, slut Vox populi An excess of a service or skilled labor in a particular area. See Physician glut. . It sank 22 percent in August. The QFII quota increase would likely boost investors' sentiment temporarily until attention shifts to economic data due next Friday Next Friday is the 2000 sequel to Friday , which depicts the neighborhood of South Los Angeles in a comedic sense. The hero, Craig Jones (Ice Cube), leaves home and moves in with his lottery winning and sex-crazed Uncle Elroy (Don "D.C." Curry) in Rancho Cucamonga. and upcoming initial public offerings, analysts said. "It might bring some upbeat sentiment for the share market next week. But such an increase in investment quotas does not necessarily mean (China) will actually grant foreigners more quotas," Zhang Gang, a Beijing-based analyst with Southwest Securities said. "They are likely to remain cautious on foreign funds' investment." 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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