April 21, 2006
UNSTUFF THE MATTRESS, HONEY:
China’s Investors Are to Get Freer Hand Abroad (James T. Areddy, Craig Karmin, Michael Phillips, 4/20/06, The Wall Street Journal)
China said it will let companies and individuals make significant financial investments overseas for the first time, a policy shift that could temporarily ease U.S. pressure on Beijing to revalue its currency, the yuan. [...]The new investment rules from the State Administration of Foreign Exchange allow professionals to buy overseas stocks and make investments outside of China. The rules also let Chinese individuals buy at least $20,000 in foreign currency each year, while companies will be able to hold more in foreign currencies than currently allowed. The changes take effect May 1.
A healthy recognition that there's nothing in China worth investing in. Posted by Orrin Judd at April 21, 2006 2:21 PM
Not really.
Companies with little investment potential are the ones that tend to have the strictest rules on capital outflows.
Posted by: Ali Choudhury at April 21, 2006 2:42 PMDoh. Meant countries not companies.
This will vitiate efforts to force up the value of the Yuan.
China's central bank reduces the number of dollars brought to currency exchanges by purchasing US treasury bonds. Now individual chinese investors will perform the same function.