FDI revisions reveal PBOC’s currency fears

Author: | Published: 8 Nov 2011

A Chinese government decision to fast track rules on renminbi-settled foreign direct investment (FDI) is indicative of authorities’ concerns over the outflow of money from the country, according to market participants.

The People’s Bank of China (PBOC) last month announced offshore institutional and individual investors would be able to make direct investments in China with the settlement of renminbi (RMB), so long as their investments are in line with China's existing laws and regulations.

The move aims to promote cross-border trade and investment settled in RMB and support the development of...