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China to allow more investment abroad in 2021 – forex official

China will allow more outbound investment by appropriately raising the quota on its Qualified Domestic Institutional Investor (QDII) scheme in 2021, an official at the foreign exchange regulator said in remarks published.

China will push forward with the opening up of its financial derivative market in 2021, Ye Haisheng, the head of capital account management department at the State Administration of Foreign Exchange (SAFE), wrote in China Forex magazine – a publication of the administration.

It will conduct feasibility studies on allowing individuals to invest in overseas securities and insurance products within an annual quota of $50,000 per person, Ye said.

It will also study the impact of unconventional foreign stimulus policies on its balance of payments, yuan exchange rates and its financial markets, the official said.

The SAFE will prevent disorderly cross-border capital flows and step up its monitoring of foreign capital flows in and out of China’s stock and bond markets, in order to head off systemic financial risks, Ye added.

“In the process of capital account opening, we will undoubtedly face some challenges,” Ye said.
Source: Reuters (Reporting by Lusha Zhang, Judy Hua and Kevin Yao; Editing by Hugh Lawson)

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