SHANGHAI, June 10 (Reuters) - Two-way volatility in China’s yuan exchange rate will become normal, and factors influencing the rate are complicated, the head of China’s foreign exchange regulator said on Thursday. China’s yuan has shown two-way volatility but has been basically stable so far this year, Pan Gongsheng, head of the State Administration of Foreign Exchange, said in a speech. China will expand quotas under the Qualified Domestic Institutional Investor outbound investment scheme, Pan said. Reporting by Winni Zhou and Andrew Galbraith; Editing by Jacqueline Wong Our Standards: The Thomson Reuters Trust Principles.