China to set easier rules to attract foreign investors

China is opening up its financial market, and it is banking on foreign investment for growth.

Under the new proposed rules for qualified foreign institutional investors, China's Securities Regulatory Commission (CSRC) wants to reduce the amount of assets under management for foreign investors to $500m (£320m) from $5bn.

The firms will also be required to have just two years of prior experience rather than five.

The CSRC is also raising the limit on combined stake foreign investors can hold in a listed Chinese company, to 30% from 20%.

However, Patrick Chovanec from Tsinghua University's School of Economics and Management told the BBC's Asia Business Report that it won't open the floodgates to foreign investment.