China Widens Yuan Investment Program in Liberalization Move
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Chinese regulators expanded a program allowing institutions to raise yuan offshore for investment in the mainland, a step that moves the nation closer to a freely traded currency and may bolster confidence in the stock market.
Financial institutions registered in Hong Kong and the Hong Kong units of Chinese banks and insurers will be allowed to join units of Chinese brokerages and fund-management firms in the Renminbi Qualified Foreign Institutional Investors program, according to a statement posted on the China Securities Regulatory Commission’s website yesterday. The regulator also expanded the range of products participants can invest in beyond exchange-traded stock funds and bonds.