Bank of China and Bank
Industry and Commercial Bank of China have
launched their first funds for investing clients' money overseas.
Any investor
will be able to put money into the funds.
The government approved an
initial batch of US$4.8 billion in QDII quotas July 21, which let three banks
convert customers' yuan into foreign currency to invest overseas.
One of the other two
banks, Industrial and Commercial Bank of China (ICBC) announced the launch of a
fund Thursday. Bank of East Asia is yet to launch its product.
Analysts expect the
capital outflows resulting from the program to ease some of the upward pressure
on the yuan, and to slow the pace of expansion of the country's foreign exchange
reserves, the world's largest.
Domestic media reported
Friday that quotas under the program could reach US$10 billion this
year.