From Reuters, via CNN:
China will gradually open its capital account in 2005, another step in its plan to make the yuan currency fully convertible, state television said on Saturday, quoting the country’s foreign exchange chief.
China, facing criticism from the West that a cheap yuan gives its factories an unfair competitive edge, has held its ground against demands it revalue — but has promised to progressively free up trading in the currency.
Guo Shuqing, head of the State Administration of Foreign Exchange, also said China would support insurance companies, which took in 431.8 billion yuan ($52.2 billion) in premiums last year, to invest in stocks overseas, potentially increasing the outflow of currency to balance huge inflows.
