Asian Financial Forum: China tests further easing of renminbi convertibility of capital account

Tests are well underway in China to establish if the country’s capital account should be relaxed to allow offshore renminbi funds to be used for foreign direct investment into the mainland. The development comes as this month China eased its rules on overseas direct investment and created a two-way gateway for onshore and offshore renminbi.

In a sign that Beijing is considering further easing restrictions on renminbi capital account convertibility, the People’s Bank of China (PBoC) has since las