Reuters with the headline info that Standard Chartered has suspended new subscriptions by its clients in China
into offshore products via a quota-based channel.
- The Qualified Domestic Institutional Investor (QDII) programme was launched in 2006.
- QDII is one of the few outbound investment
channels qualified domestic and foreign institutions use to help
Chinese wealth and corporate clients to invest offshore
StanChart cited “commercial reasons”.
The comes amid Beijing’s efforts to stem
capital outflows as weaker yuan and a slowing economy have
driven savers to move assets offshore.
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While StanChart is not specifying the reason for the suspension its not that much of a leap to imagine it may be in response to some sort of ‘suggestion’ from Chinese authorities. China is scrambling to protect the yuan from plunging. We see that intervention every single day at the CNY reference setting.
This article was written by Eamonn Sheridan at www.forexlive.com. Source