Impetus for a Shanghai Rally


The Wall Street Journal’s Asialinks daily view includes the following excerpt:

At the same time [referring to an finance professor’s commentary on how stricter bank capital requirements may in fact compel Beijing to revalue the yuan faster], China’s foreign-exchange regulator increased the total quota for foreign companies to invest in the domestic capital market to $30 billion, as promised, under the qualified foreign institutional investors program. The quota stood at $10 billion in mid-June. The regulator also said it will increase the size of the investment that domestic residents may make into overseas securities markets, but it didn’t specify the quota amount. (Link to main article)