|China Gets Aggressive on Yuan Convertibility|
|by Tom McGregor||Wed, Jul 4, 2012, 07:58 PM|
BEIJING: Almost ten years after China began to relax some of its capital controls, the nation is making more aggressive steps towards that end.
According to the China Daily, “the country’s top economic planner on Friday unveiled a raft of measures targeted at south China’s city of Shenzhen, including trials for cross-border loan issuances to boost the free conversion of China’s currency, the yuan.”
The measures would cover issues related to taxation, education, medical treatment, telecommunications, legal matters and the recruitment of new talents, as disclosed by the National Development and Reform Commission (NDRC).
As reported by the China Daily, “China vowed in 2003 to gradually ease its grip on cross-border capital flow and ultimately open its capital account as part of the country’s efforts to turn the yuan into a global reserve currency.”
Hong Kong banks could conduct cross-border yuan financing that would play a pivotal role to promote offshore yuan business in the city, said Xie Guoliang, senior analyst for Bank of China Hong Kong.
To read the entire article from the China Daily, link here:
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