That should help bolster investment staying in/going into the country
It looks like China is really looking to play the long game here. The QFII and RQFII limits are basically an investor grant to allow for the purchase of certain cross-border securities products, if those investors are able to meet certain requirements.
There has been talk since the start of the year that China may combine both limits to ease foreign institutions' access and also to broaden the investment scope to include derivatives, repos and private funds.
The removal here essentially allows for investors to directly tap China's capital market without going through the hoops.
With the yuan increasingly seen as a potential weapon in the trade war with the US, I reckon the move here is largely to ensure that investment capital stays within China amid ongoing concerns about the economy and the trade war.
Your move now, Mr. Trump.
