Chinanews, Shanghai, Nov. 1 – China will lift the limitations on overseas institutions in their Renminbi fund raising activities in China. At an appropriate time, China will allow overseas bodies to remit their Renminbi funds out of the Chinese mainland through currency exchanges.

 

The information was disclosed at the 2007 Bi-annual Chinese International Settlement Report issued by the State Administration of Foreign Exchange on Wednesday.

 

In February 2005, the People's Bank of China, China's central bank, and the China Securities Regulatory Commission jointly released the Provisional Administrative Rules on International Development Institutions' Issuance of RMB Bonds. The regulation stipulated that all the funds raised by overseas institutions through the issuance of Renminbi bonds should be used for projects in China. The fund should not be exchanged to foreign currencies and remitted outside China.

 

After the regulation was published, the Asian Development Bank and the International Finance Corporation issued some Renminbi bonds. In conformity with the Chinese law, all the funds raised in this way have been used to help Chinese enterprises to develop their projects.

 

The new measure shows that China is trying to take multiple means for balance of international payments and to decrease the fast growth of foreign exchange reserves, some analysts say.

 

In addition to this measure, SAFE said it will take more measures to facilitate trade investment activities in future.