Overseas investment may slow yuan
The expansion of a program allowing Chinese banks to invest overseas could restrain the yuan's appreciation, Hong Kong Monetary Authority Chief Executive Joseph Yam (迎) said yesterday.
China's banking regulator said Friday it will expand the Qualified Domestic Institutional Investor program to allow approved banks to invest in foreign stocks and equity-linked products on behalf of clients -- a move that could divert some of the money poured into domestic markets. Approved banks can already invest in fixed income products.
"[The move] may be able to alleviate the special macro-financial situation in China, for example the pressure on its exchange rate,'' Yam told reporters.
The yuan has risen 5.3 percent since a revaluation of 2.1 percent in July 2005, but with the country's growing trade surplus the yuan is likely to rise further.
No comments:
Post a Comment