China FX Regulator Intends To Continue Convertibility Of Capital Account
The China’s State Administration of Foreign Exchange (SAFE) stated of deepening China's foreign exchange reforms and improving business conditions. So that, China's foreign exchange regulator said that it will steadily push forward with the convertibility of its capital account, and at the same time fend off risk from cross-border capital flows. China's forex regulator last month also widened the quotas of two other outbound investment schemes in Shanghai and Shenzhen as part of the government's efforts to liberalize financial markets.
Earlier, the Chinese government said it will resume two key outbound investment schemes, allowing domestic financial institutions to invest in overseas securities. China had also stepped up its crackdown on outbound investment deals that authorities suspected were highly speculative and were being used to circumvent capital controls.
China has suspended outbound investment schemes in 2015, after gyrations in Chinese stock and currency markets prompted a capital flight that led Beijing to burn its vast foreign exchange reserves by nearly $1 trillion to shore up the yuan and reduce outflows.