BRICS member China has increased its quota on foreign investments as the country is receiving an influx of funds from institutional clients. Foreign funds have been entering the Chinese stock market in 2025 as the US dollar’s DXY index has fallen to a three-year low. The Communist country is reaping the benefits of a weak USD by allowing more funds from abroad to enter its markets.

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The State Administration of Foreign Exchange (SAFE) raised the forex quota to $170.9 billion for qualified domestic institutional investors. The previous quota stood at $167.8 billion and will come into effect from July 1, 2025. That’s an increase of $3.1 billion in foreign investments just a week ahead of the BRICS 2025 summit in Brazil.

China Hikes $3.1 Billion Foreign Investments Ahead of BRICS 2025 Summit

China is leaving no stone unturned to make its economy robust and stronger ahead of the BRICS summit by increasing the quota for foreign investments by $3.1 billion. The move comes after the US dollar has received downward pressure and has dipped 10.5% year-to-date. In addition, there’s a decreasing demand for US-based financial assets such as Treasuries and bonds.

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Even retail investors in China are having a decreased appetite to trade US stocks in 2025. The increase in quota for foreign investments can help China gain an upper hand in the 17th BRICS summit. The amount of money poured by mainland investors in the Hong Kong index has surged to $93 billion this year.

This makes China the most sought-after market as retail holders are bullish on the Hang Seng Index. An additional increase in foreign investments will make the index soar further and generate profits. It has already spiked nearly 23% year-to-date and is still attracting bullish sentiments. China’s clever move in the foreign investment sector can help it gain new trade deals in the BRICS 2025 summit.