China likely to abandon 'through-train' investment scheme, says CBRC's Luo

Chinese regulators and government officials will scale back reform of the country's financial services sector due to deep concerns about the unravelling of the developed world's economies, said a senior China Banking Regulatory Commission (CBRC) official on Friday.

In a speech at the Asia Risk 2008 conference in Hong Kong, Luo Ping, Beijing-based director-general of the training department at the CBRC, said expansion of China's qualified domestic institutional investor (QDII) scheme will be halted due to domestic investors' losses from QDII investments.

QDII, introduced in 2006, allows Chinese citizens to invest outside their home market. At the end of last year, more than $64 billion of quota had been approved and QDII underpinned a burgeoning structured