BEIJING, Feb. 15 -- The government may ease requirements for foreign investment in its stock and bond markets as early as April, seeking to bring more capital into the nascent sectors, the China Securities Journal said yesterday.

    Fund managers and insurance companies applying under the new rules should have a minimum of US$5 billion in securities assets under management ¡ª half the current minimum of US$10 billion, the paper said.

    Insurance firms that have been in business for at least five years will also be able to apply, the paper said, a reduction from the current 30-year limit.

    China first allowed foreigners to invest in its financial markets in 2003 under the Qualified Foreign Institutional Investor (QFII) program, permitting mutual funds, insurance companies, securities firms and banks to buy domestic stocks and bonds.

    Under that program, the government granted investment quotas to 27 firms, according to the State Administration of Foreign Exchange, which determines the size of the quota for each participant. Another four have been given initial approval to join the program but are awaiting their quotas.

    The administration has granted the participants combined quotas of US$5.65 billion to invest in domestic markets.

    The receipt of QFII status allows foreign investors to trade yuan-denominated A shares in more than 1,400 domestically listed firms, as well as treasuries and corporate bonds.

    The latest opening of its markets would follow the government's announcement last year that it would more than double to US$10 billion the amount that foreign firms could invest in its primary stocks and debt markets from the previous US$4 billion.

    (Source: Shenzhen Daily/Agencies)