Japan handed US$31.5b investment quota

CHINA has agreed to grant Japan RMB Qualified Foreign Institutional Investors quota of 200 billion yuan (US$31.5 billion), Chinese Premier Li Keqiang said yesterday.

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 scheme, he said.

During the meeting, Li also pointed to energy efficiency, environmental protection, scientific and technological innovation, high-end manufacturing, finance, sharing economy and gerontic 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 yuan clearing bank in Tokyo, Li said.

He called on China and Japan to stick to the principles of the four bilateral political documents and consensus, and bring bilateral ties back to normal.

China and Japan are each other’s important neighbor and major economies of the world, Li said, noting that long-term, healthy and stable development of bilateral ties conforms to the interests of the two countries and is good for peace, stability and prosperity of the region and the world.

He said China-Japan ties are at a crucial stage for improvement, as this year marks the 40th anniversary of the signing of the bilateral treaty of peace and friendship. He called on the two sides to seize the opportunity to review the spirit of the treaty, cement the political foundation, expand friendly cooperation, and implement the political consensus that China and Japan are cooperation partners, not threat to each other.

Li urged joint efforts from both sides to promote bilateral relations back to the right track, and achieve long-term, healthy and stable development.