China Merchants Bank is approved by the state regulator to buy overseas financial investment products on behalf of the Chinese customers, Xinhua reported. The move increases the number of China's Qualified Domestic Institutional Investors (QDII) to eight. With speculation that the yuan could appreciate and China breaking trade surplus records, foreign capital is rushing into the country. To balance its international payments, the authorities are expanding the QDII scheme. However, analysts have pointed out that the authorized QDII quotas were too small and would not change the situation in the short term as China's savings, trade surplus and foreign exchange reserves continued to rise. Easing controls on capital outflow would help ease pressure to yuan revaluation, said Xinhua, quoting China Securities Journal.