MORE: Shanghai Free Trade Zone to Test Yuan Convertibility: AFP

China will allow the convertibility of the yuan on the capital account on a trial basis “under the pre-condition that the risk can be controlled,” Agence France-Presse reported, citing a draft plan. * Companies registered in the free trade zone can open special accounts to freely exchange yuan while being required to close their onshore Chinese accounts with only a few exceptions, AFP cites an unidentified government official familiar with the plan, as saying * Draft plan lists 19 business sectors to be liberalized including banking services, health insurance, financial leasing, game devices, value-added telecommunications, cultural relic auctions, legal services, medical services and ocean cargo shipping, the report says * Foreign-funded and joint-venture banks will be allowed, the draft is cited as saying * Chinese banks will be able to conduct offshore business * Foreign-funded health insurance will be allowed on a trial basis * Wholly foreign-owned international ship management companies will be allowed * Foreign-funded companies will be allowed to make and sell game and amusement devices with those passing content inspection permitted for sale on the domestic market * Foreign funded joint-stock investment companies will be allowed * Limits on foreign investment proportions in joint-venture international shipping companies will be relaxed * Non-Chinese flag ships owned or controlled by Chinese companies will be allowed to carry out domestic container operations