China’s State Administration of Foreign Exchange has announced that it would provide greater support to overseas investment and trade by Chinese enterprises that are expanding abroad, as well as part of efforts to advance Xi Jinping’s “One Belt One Road” initiative.
At a press conference held on 22 June SAFE head Bo Gongsheng said that the body would further raise the convenience of cross-border trade and investment, as well as provide better service to overseas opening up in addition to the real economy.
SAFE said that it would “appropriately promote bi-directional opening of financial markets in an orderly way…actively support qualified enterprises undertaking authentic overseas investment in compliance with regulations, and support Chinese enterprises ‘expanding abroad'”
SAFE would also “support and guarantee international payment and transfers for genuine standard projects that are in compliance with regulations,” pointing out that “operating an excellent foreign exchange regulatory and policy environment supports the participation of Chinese enterprises in the development of One Belt One Road.”
According to Bo foreign reserve fluctuations and RMB exchange rate trends had stabilised since the start of the year, while cross-border capital flows as well as supply and demand on foreign exchange markets remains essentially stable.