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28 Aug, 2011

China to allow foreign direct investment in RMB – People’s Daily Online

Foreign investors will be able to make direct investments in China with RMB obtained legally from overseas, according to the draft guidelines on RMB foreign direct investment (FDI) recently issued by the Ministry of Commerce.

The ministry is currently soliciting public feedback on the new rules. This regulatory framework for cross-border RMB FDI will be officially launched contingent on smooth pilot runs. Some insiders believe that this guideline will provide specific rules to follow in the backflow of RMB raised overseas, which will be another major step for the country’s efforts to internationalize the RMB and open its capital market.

This move shows the central government’s determination to accelerate the internationalization of the RMB.

via China to allow foreign direct investment in RMB – People’s Daily Online.