Capital Account Convertibility Continues To Explore &Nbsp; &Nbsp; Wenzhou Is Permitted To Invest Overseas.

Rich private capital

The reporter learned from the Wenzhou Municipal Bureau of foreign trade and economic cooperation that Wenzhou recently issued the pilot scheme of Wenzhou's individual overseas direct investment, allowing Wenzhou over 18 years of age to have household registration and obtaining private passports for overseas investment.

According to the pilot scheme, investors can use their own foreign exchange funds, Renminbi to purchase foreign exchange and other foreign exchange assets approved by the foreign exchange bureau for overseas direct investment.

Profits from overseas direct investment can be retained abroad for reinvestment abroad.

The investment mode is limited to the establishment of non-financial enterprises overseas or the acquisition of the rights and interests of the ownership, control and management rights of the existing non-financial enterprises through new ways, mergers and acquisitions and equity participation. However, investment does not allow for energy and mineral resources.

At the same time, the amount of overseas investment by investors should not exceed $3 million. If a number of investors jointly implement an overseas direct investment, the total investment will not exceed $10 million, and the total annual amount of individual overseas direct investment will not exceed $200 million.

The realization of RMB capital account convertibility is one of the important tasks during the "12th Five-Year" period.

Zhou Xiaochuan, the governor of the central bank, also said recently that under the premise of effectively preventing the abnormal flow risk of cross border capital, the next step is to steadily promote capital account convertibility. The main measures include taking direct investment facilitation as the starting point, taking the lead in realizing the basic convertibility of direct investment, and further expanding the cross border paction of other capital items by expanding the autonomy of individuals' exchange.