China Will Gradually Open Capital Account

2005/03/15

China is taking measures to gradually open its capital account in 2005 in a step towards making its currency fully convertible. The head of the State Administration of Foreign Exchange Guo Shuqing said China would gradually ease limits on the amount of renminbi currency that can be exchanged under the capital account. The measures will allow Chinese companies to keep capital raised in foreign listings offshore and will allow foreign companies to issue yuan-denominated bonds in China. Insiders say that a free renminbi exchange under the current account has been realized in China, and that only a little less than 20 percent of renminbi held in the capital account is now under control.



	Article featured in Business Beijing, March 2005 Publication sponsored by Information Office of the Beijing Municipal Government, Beijing Municipal Bureau of Commerce, Development & Reform Commission of Beijing Municipality, China Council for the Promotion of International Trade (Beijing Sub-Council)