The Ministry of Commerce announced Monday that it will further lossen controls on cross-border RMB direct investment, Xinhua reported. Under the new regulation, approval procedures for RMB-denominated direct investment from overseas investors will be further simplified. Although foreign investors are still not llowed to invest in negotiable securities, financial derivatives, and entrusted loans in RMB. The new regulation takes effect on Jan 1, 2014. In cross-border RMB direct investment, foreign investors use legally acquired RMB to make investments in China by founding companies, increasing investmen, or participating in mergers and acquisitions of domestic enterprises.
Written by Dora Men
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