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News Summary: China mulls hiking investment quota

The Associated Press

OPEN WIDER: China's securities watchdog is considering substantially raising the quota that foreign institutions are allowed to invest in the country's stock markets, the latest signal from Beijing of plans to open the Chinese capital markets.

THE BACKGROUND: Stock markets in China are largely out of bounds for foreign investors because of tight capital controls. The chairman of the China Securities Regulatory Commission said Beijing's "long-term policy" was to open capital markets.

MOVING THE CHAINS: In April, the regulator raised the quota allotted to outside investors under the Qualified Foreign Institutional Investor program to $80 billion from $30 billion.