China Further Loosens Its Capital Controls – Keith Bradsher
From International Herald Tribune:
The Chinese government announced Monday that it would allow mainland Chinese citizens to invest in the Hong Kong stock market, the most significant move to date by Beijing officials to dismantle the many barriers that prevent most Chinese from making international investments.
China still has many restrictions on the movement of money in and out of the mainland for anything except payments associated with exports and imports. But Hong Kong allows money to flow in and out of its financial markets without restrictions, except for the usual controls on money laundering and other criminal activity. By making it easier for Chinese investment to leave the mainland, the government hopes to offset some of the money pouring into the mainland through corporate investments and China’s soaring trade surplus. [Full Text]
[Image: A trader on the floor of the Hong Kong stock exchange, from European Pressphoto Agency. ]
