Investors allowed to go global
14 April 2006
Companies and individuals will be able to make investments overseas for the first time, the Wall Street Journal reported the State Administration of Foreign Exchange as saying. The investment rules revision could alleviate some of the American pressure on Beijing over the value of the yuan as the policy shift may strengthen the currency indirectly through changes in the exchange-rate system. From May 1, professionals will be permitted to purchase overseas stocks. Individual Chinese will be able to buy up to US$20,000 in foreign currency a year. The move is the latest in a gradual move towards a market-based currency, but a very large amount of Chinese investors would have to make a sudden foray for a significant impact on stock markets or currency values.