UBS AG intends to raise its investment in the Chinese stock markets to $1 billion. Above the currently negotiated $800 million quota allowed by China’s regulators, says the Swiss investment bank.

UBS was the first to be approved as "qualified foreign institutional investor" and to get a quota from the State Administration of Foreign Exchange.

"We hope to maintain our capital liquidity continuously and gradually. For the next round, we hope to get more quota of about $200 million to $300 million from SAFE," said Nicole Yuen, head of China Equities at UBS Investment Bank.