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By Dai Qi

China approved two more Qualified Foreign Institutional Investors (QFII) applications in August, according to a news release on the website of the China Securities Regulatory Commission on Sept. 7.

Analysts said the approval is among a series of policies China has carried out to promote the internationalization of the country's A-shares market, which would benefit China's financial market in the long run, as reported by the Securities Daily, one of China's major securities newspapers.

Statistics from Tonghuashun, a financial data provider in China, showed that by the end of the second quarter of this year, QFII appeared as the first of ten shareholders in 260 companies. Since the first quarter last year, QFII has held 98 individual shares for six consecutive quarters.

Good performance of those shares might be a reason for the substantial holdings of QFII in the past six quarters, said the Securities Daily.

Data shows that among the 98 mentioned companies, 76 hold 77.55 percent of the total shares and had achieved a year-on-year increase in their net profits in the first half of 2018.

Regarding the capital flow, 32 shares held by QFII for six consecutive quarters had absorbed 345 million yuan (about 50.3 million U.S. dollars) in total last week. 

Regarding categories, the 98 mentioned individual shares are mainly involved in four industries, namely medicine and biology, food and beverages, transportation as well as media, with ten, nine, eight and six shares respectively. 

Moreover, other industries like household appliances, commerce and trade, electronics, chemical engineering, building materials, as well as public utilities also have at least four shares held respectively by QFII for six consecutive quarters.