China agrees to grant Japan 200b yuan RQFII quota

TOKYO - China has agreed to grant Japan RMB Qualified Foreign Institutional Investors (RQFII) quota of 200 billion yuan (about $31.36 billion), Chinese Premier Li Keqiang said on Wednesday.

Li announced the decision during his meeting with Japanese Prime Minister Shinzo Abe in Tokyo.

The granting of the RQFII quota would help Japanese financial institutions to actively invest in China's capital market through the RQFII, he said.

During the meeting, Li also pointed to energy efficiency, environmental protection, scientific and technological innovation, high-end manufacturing, finance, sharing economy, and gerontics services as key areas where China and Japan should enhance cooperation.

The two sides have agreed in principle to sign a currency swap deal at an early date, and this will help safeguard financial market stability and promote investment facilitation, Li said.

China holds a positive attitude toward establishing RMB clearing bank in Tokyo, the premier said.

Li arrived in Tokyo on Tuesday for an official visit to Japan and to attend the 7th China-Japan-South Korea leaders' meeting. The trilateral meeting was resumed after a two-and-a-half-year suspension.