Sources: China to boost investment quota to $100bn

24 April 2012

Policymakers in China are set to increase the quota on outbound investment schemes to $100 billion in order to improve its financial outlook.

That is according to sources close to the China Securities Regulatory Commission (CSRC) and the People's Bank of China (PBOC), who have told Reuters that Beijing officials are willing to take measures to loosen the nation's capital account.

The insiders went on to say hurdles on moving foreign currency in and out of China are also likely to be removed over the next year as policymakers look to diversify the country's business finance, increase capital flows and quicken corporate hedging.

One of the individuals commented: "There is a window of opportunity and the reformers are trying to get as much through it as quickly as possible."

Earlier this week, Zhou Xiaochuan, governor of the PBOC, told Caijing magazine that China will not rush into making a decision on whether or not it will loosen the deposit rates offered by its banks.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development