BEIJING - The State Administration of Foreign Exchange has recently granted a total of $3.08 billion in investment quotas to eligible Qualified Domestic Institutional Investors (QDII) to meet the demand for overseas asset allocation, it said Monday.

The move aims to further support QDII institutions in conducting cross-border investment activities in compliance with laws and regulations. Under the premise of effectively preventing risks, it seeks to meet the reasonable overseas investment demands of domestic residents, the administration said.

The QDII program is a key institutional arrangement for China's financial market opening. It allows eligible domestic financial institutions to remit both renminbi and foreign currencies abroad within specified quotas to invest in overseas financial markets.

"Under the current stable and positive conditions in the foreign exchange market, granting quotas at an appropriate time can orderly meet the legitimate investment needs of market participants and contribute to the healthy development of the QDII system," the administration said.

The administration said that the quota allocation process comprehensively considers factors such as the asset management scale as well as internal control and compliance of QDII institutions.