BEIJING (Xinhua) – Buying and selling Chinese currency, yuan, will be allowed on a wider range in the future, as China stands firm on promoting financial opening up, the central bank said on Friday.
Earlier this year, the People’s Bank of China (PBOC) issued a circular on improving the management of selling and buying yuan in response to a higher level of the yuan’s convertibility under the capital account and progresses in the currency’s internationalisation and financial opening up.
“The requirements of market entities for the convenience of trading the yuan have been on a constant rise,” the PBOC said in a statement on its website.
In the circular, yuan trading was allowed across the current account, compared with the previous scope including just goods trade and service trade under the current account.
Meanwhile, yuan trading under the capital account was expanded to approved cross-border securities investment, while previous rules only allowed trading of the yuan for direct investment, the PBOC said.
“In the future, with the constant expansion of the opening up of the financial sector, the business scope of approved cross-border securities investment will continue to rise, and the scope of yuan trading will expand correspondingly,” the statement said.
After increasing investment quotas for the Shanghai-Hong Kong and Shenzhen-Hong Kong stock connect programmes this year, authorities are making preparations to launch the Shanghai-London stock connect programme within the year.
At present, overseas participants of yuan trading only include companies and institutions, not individual investors, PBOC said.