Layer of concern excess. If the yuan is now also open to inward FDI, it is estimated there will be a considerable number of enterprises to participate. These companies, in view of the expected appreciation of the renminbi, at this stage to buy yuan invested in the domestic market, will save the cost of investment. However, if the opening of RMB inward direct investment will likely increase in excess domestic liquidity.
RMB direct billing
open to foreign direct investment in the first pilot
Xu Sheng believes that in the direct investment in the territory of the RMB settlement must be mentioned on the agenda of the next step, China will allow its currency to a certain extent under the two-way flow of capital items, it is inevitable.
yesterday, JP Morgan Sheng Hsu, director of financial management of the document put forward their own point of view: first open trial of foreign direct investment reflects the current management for the concern.
Huaxi Dushi Bao reporter Shu Zhanghui
help companies commitment by the Chinese investment company. Today, as more Chinese enterprises to go overseas, opening the RMB settlement of direct investment that can help Chinese enterprises better control risk. Currency exchange rate fluctuations will be overseas Chinese enterprises to invest in target companies take, both to help Chinese enterprises to reduce investment risk, but also reflects the RMB in the international community from the weak to become strong, is a step forward in the internationalization of RMB.
fears influx of hot money
open to foreign direct investment for the first instead of inward direct investment in the pilot trial, Xu Sheng believe that this reflects the current management
1 13, the PBC issued Notice No. 2011, promulgated the According to this approach, the RMB settlement of cross-border trade within the pilot area up for the non-financial enterprises, can carry out RMB foreign direct investment.
Hsu Sheng that start pilot foreign direct investment RMB, the yuan towards a truly international currency another important step in the process, marking the internationalization of the RMB under the regular open to capital account liberalization. Meanwhile, the introduction of the policy also increased the yuan in a new way to guide the international market, domestic relieve the pressure of excess liquidity, foreign pilot areas in the formation of these overseas stock of RMB is conducive to the construction of the renminbi overseas markets, thus indirectly to further promote and expand cross-border trade of RMB under the clearing activities.
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