Wednesday, September 13 2006 17:18 Hrs (IST) - World Time -

Beijing: China's foreign exchange authority has awarded additional investment quotas totaling $350 million to two qualified foreign institutional investors (QFII).

Morgan Stanley received an investment quota of $200 million and Goldman Sachs $150 million from the State Administration of Foreign Exchange (SAFE).

Morgan Stanley and Goldman Sachs, two of the main US-based international financial service firms, have their largest investments in China's A-share market on the Shanghai-based Baoshan Iron and Steel Company.

The government launched the QFII pilot programme in 2003, allowing foreign institutional investors such as the UBS, Deutsche Bank, and Citigroup Global Markets Limited to engage in the securities business in China.

Since then, the regulator has been making efforts to improve rules and regulations in a bid to broaden the stock market to foreign investment.

To date, 45 foreign investment institutions have been approved as QFIIs and the SAFE has awarded investment quotas totaling $7.84 billion.