Watch Out, Chinese Money May Start Trickling Away | WHAT REALLY HAPPENED

Watch Out, Chinese Money May Start Trickling Away

China will ease restrictions on investing abroad, including raising the QDII quota for institutions and studying the feasibility of allowing individuals to buy foreign securities within their annual limit, a State Administration of Foreign Exchange official said Friday. Currently, Chinese residents are allowed to purchase up to $50,000 a year of foreign currencies, but the funds can only be used for purposes such as traveling and studying, not for buying overseas property, securities or life insurance.

The authorities have already taken a slew of steps since late last year to encourage outflows and temper inflows in a bid to slow the yuan rally. To underscore the appreciation pressure, Friday’s data showed China’s current account surplus surged to $130 billion in the fourth quarter, the most since 2008.

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