China To Permit Yuan FDI

2011-10-14 14:17:58

China has designed a scheme that allows foreign institutions and individuals to apply yuan earned overseas to invest directly in the country.

In a statement, People's Bank of China (PBOC) said that the latest action will help to expand the cross-border use of renminbi and support the development of the renminbi market in Hong Kong. Under the scheme, qualified foreign investors can apply for settlements to banks.

For yuan FDI deals for CNY 300 million and more, the application should be submitted to the Ministry of Commerce for approval, the ministry said in a separate report.