BEIJING: China will allow companies across the country more leeway in converting funds raised from overseas debt markets into yuan, the foreign exchange regulator said.
All firms, including foreign-invested firms, will be allowed to sell foreign debt funds to banks based on their willingness, the State Administration of Foreign Exchange said in a circular, which was dated June 9.
Firms in free trade zones in Shanghai, Tianjin, Guangdong and Fujian had already been permitted to freely convert funds raised from overseas bond issuance, it said.
Companies will also be allowed settle their foreign exchange funds raised from stock listing overseas "in accordance with the actual operations", the regulator said.
The reforms are aimed at improving cross-border investment and supporting the real economy, it said.
China has been trying to reform its foreign exchange management systems to give firms more freedom in handing funds but tightening capital controls to curb speculative money flows.
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