China to ease forex rules on foreign direct investments
BEIJING (REUTERS) - China's currency regulator said on Wednesday it would ease some regulations and cut red tape to support foreign direct investments (FDIs) in the country in the face of slowing inflows.
The move came after data on Tuesday showed China's longest run of year-on-year declines in FDIs since 2009 extended into last month, dragged down by an uncertain outlook for corporate spending as global trade sags.
The State Administration of Foreign Exchange (Safe) said in a statement on its website that it would simplify procedures for foreign exchange transactions in FDI accounts and quicken approvals for investment applications.
It would also scrap the rules under which foreign investors needed approval to open foreign currency accounts and to re-invest FX earnings.