China to raise RQFII quota for Hong Kong to 500 bln yuan

BEIJING, July 4 (Reuters) - China's cabinet has approved an increase of quota under the Renminbi Foreign Institutional Investor (RQFII) scheme for Hong Kong to 500 billion yuan ($73.55 billion) to further meet demand for yuan asset allocation by Hong Kong investors, the central bank said on Tuesday.

As a pioneer to promote the yuan's internationalization, Hong Kong was granted a 270 billion yuan quota under the RQFII scheme in 2011 to facilitate cross-border foreign investment. ($1 = 6.7984 Chinese yuan renminbi) (Reporting by Beijing Monitoring Desk; Editing by Neil Fullick)