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China will more than double the amount of money that qualified overseas institutional investors can put into its stock markets. This is the latest move in a number of measures aimed at reviving the country's beleaguered capital markets.

The government will raise the overall investment quota set under the Qualified Foreign Institutional Investor Scheme to 10 billion US dollars, from the current four billion.

Citigroup, the world's largest bank, has already applied to raise its 400 million US dollars quota, as has Credit Suisse First Boston, whose quota stands at 150 million US dollars. Belgium-based Fortis Investment Management has said it hopes to at least double its 100 million US dollars allotment. And investment banking leasers like Merrill Lynch, Morgan Stanley, UBS, JP Morgan and HSBC are also licensed to invest in China's yuan-based A shares.

China opened its stock markets to overseas investors in December 2002. The QFII scheme accepts overseas investors with assets of at least 10 billion US dollars. And any shares they buy must be held for at least a year.

In another move to aim at supporting shares, the China Securities Regulatory Commission, which regulates the country's stock markets, said it would suspend initial public offerings for the time being to allay fears about a flood of new issues entering the market.