SEOUL, Oct 31 (Reuters) - South Korea said China agreed on Saturday to boost by 50 percent the quota on its investment in the Chinese stock and bond markets and to push for an early start to direct yuan-won trading within China.
The two countries reached the agreement in Seoul on the sidelines of a meeting between their leaders as the global trade giants try to expand their business ties.
Under the agreement, China agreed to raise the Renminbi Qualified Foreign Institutional Investor (RQFII) quota on South Korea to 120 billion yuan ($18.99 billion) from 80 billion yuan now, South Korea’s finance ministry said in a statement.
It would be the second-highest ceiling after Hong Kong that China has allocated for foreign countries, the ministry added.
China also agreed to set up a direct trading exchange market between the won and yuan under the China Foreign Exchange Trade System in the near future, the ministry said, without providing an exact date. ($1 = 6.3180 Chinese yuan renminbi) (Reporting by Choonsik Yoo; Editing by Miral Fahmy)