Account to go deeper of capital reform

Account to go deeper of capital reform - the country's foreign exchange regulator said yesterday.in China's inter-bank bond market.Five overseas firms with a total quota of 29.2 billion yuan at the end of 2010 are allowed to invest China will deepen reform of its capital account and encourage more yuan cross-border transactions.

The state administration of foreign exchange in 2011, the center said in a statement yesterday on its Web site, including enhanced monitoring and analysis of the elements of cross-border capital and reduction of speculative "hot money". SAFE main message is that it will open the bill to reduce restrictions on capital flows, and the law of suppression of speculative capital, the company is legitimate.

China's current account or trade, is fully convertible. But the capital account or investment, but not completely open.

gradual reform of China and the stability of the capital account is the most important thing is the appreciation of RMB on the global currency in the long term, analysts said.

It is also necessary to open the capital account, because the yuan is the rapid expansion of border trade between the total liquidation of the program to 506.3 billion yuan (76.7 billion U.S. dollars) in 2010. Yuan for the accumulation of foreign countries in China by a legitimate program. Since last year, companies participating in the scheme of more than 67,000 in 20 provinces and municipalities.