Posted on 24 Nov 2015
"Inflation is peaking and currencies depreciate. It is imperative to stabilise the financial market. So, we want assume a market role by purchasing your treasury bonds," he said at the Malaysia-China High-Level Economic Forum yesterday.
However, he did not reveal how much Beijing will invest.
He said the country will work with Malaysia in producing more middle-income earners to help Malaysia achieve its goal of high-income status by 2020.
Li announced that under the Renminbi Qualified Foreign Institutional Investor (RQFII) programme, China would allocate a 50 billion yuan (RM33.7 billion) quota to Malaysian investors to invest in its capital market.
Malaysian-qualified institutions will be able to mobilise offshore renminbi funds to gain direct exposure to the Chinese financial markets.
Bank Negara Malaysia and the Securities Commission (SC) described the extending of the RQFII programme to Malaysia as another milestone in the country's deepening collaboration with China and will complement the renminbi clearing bank arrangement in Malaysia.
Bank Negara said in a statement yesterday that the move will contribute to the development of the renminbi market in Malaysia. It also said the SC will further collaborate with the China Securities Regulatory Commission to implement the RQFII programme.
