How quickly should the yuan be liberalised?

Author: Brian Yap | Published: 3 May 2016

Opinions continue to differ on the pace of yuan convertibility, with some speakers at ASIFMA’s China Capital Markets Conference last week calling for an end to fragmentation of the regulatory environment.

The State Administration of Foreign Exchange (SAFE) announced in February a series of relaxation measures aimed at increasing the amount of quota available under the Qualified Foreign Institutional Investor (QFII) programme, and simplifying the rules on quota allocations under the Renminbi Qualified Institutional Investor programme (RQII).

But panellists at the April 27 event argued that these quota regimes, which restrict the amount of capital foreign institutional investors are allowed to invest in China’s capital market, should be scrapped altogether.

"The reforms that Chinese regulators need to do is really around the defragmentation of the regulatory environment," said Philippe Ahoua, principal officer at the Treasury Client Solutions Department at International Finance Corporation in Hong...