Chinese citizens have been allowed to invest directly in overseas securities market on a trial basis, according to a circular released by the State Administration of Foreign Exchange (SAFE) on Monday.
According to the circular, the Binhai New Area of Tianjin will be the first pilot area for the trial program.
In the early stages of the pilot project, individuals will only be allowed to invest in securities traded on the Hong Kong securities market with self-owned or purchased foreign currency, said the circular.
According to the SAFE, the pilot project will help develop China's personal overseas investment business step by step and gather experience in hedging risks in the international market.
It is also an important move to deepen the reform of the forex management system and to expand channels for forex capital to flow overseas, it said.
China's forex reserve had reached 1.33 trillion U.S. dollars by the end of June.
Source: Xinhua
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