The People's Bank of China recently announced that the pilot area of the renminbi qualified foreign institutional investors (RQFII) has been extended to the Netherlands with an investment quota of 50 billion yuan. The relevant person in charge of the central bank said that the expansion of the RQFII pilot area to the Netherlands is an important manifestation of deepening cooperation between the two countries in the financial sector. It is conducive to broadening the channels for the allocation of RMB assets of overseas investors, expanding the opening of the domestic capital market, and promoting bilateral trade and Investment facilitation.
In order to expand the cross-border use of RMB and promote the opening of China's capital market, China launched the RQFII pilot at the end of 2011, allowing qualified overseas institutions to use the RMB funds from abroad to invest in the domestic securities market within the approved quota.