China has been keen to boost foreign investment in its financial markets
China has said it will
"simplify" procedures for foreign direct investments, the latest step in
its attempts to attract more investors.
Under the new rules, investors will not require approval for opening foreign currency accounts or for re-investing foreign exchange earnings.
China has been trying to attract foreign investors in an attempt to spur a fresh wave of economic growth.
China's growth has been slowing and hit a three-year low in the third quarter.
The slowdown has hurt the flow of foreign direct investment (FDI) into the country.
Earlier this week, China reported that FDI fell 0.24% in
October, from a year earlier. That was the 11th month to record a drop
in the past year.
The new regulations will be implemented from 17 December, according to the state news agency Xinhua.
More attractive?
Prompted by the slowdown in its economic growth and the fall
in foreign investment, China has taken various steps to try to attract
investors.
Earlier this month, Beijing said that it would raise the cap
on the total amount of money foreign investors can bring into the
country.
It said it will raise the quota for its Qualified Foreign
Institutional Investor (QFII) programme - one of the main channels used
by foreign firms to invest in Chinese financial markets - once its
current limit of $80bn (£50bn) is reached.
It was the second time this year that it had made such a move.
Earlier this year, it relaxed the entry rules for foreign
investors, making it easier for more firms to make a foray into China.
It also opened up more investment options for QFIIs, by
allowing them to participate in China's tightly-controlled interbank
bond market.
Furthermore, it has raised the limit on the combined stake
that foreign investors can hold in a listed Chinese company to 30% from
20%.
The securities regulator has also said that it is considering offering tax breaks to QFIIs.
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