China has approved RMB convertibility on the capital account within a prescribed limit of 10 million USD for the financial institutions registered in Guangdong, Fujian and Tianjin free trade zones (FTZs), the central bank said on Dec. 11th, according to Xinhua.
There are no geographical restrictions on financial institutions in Guangdong, Fujian FTZs for off-shore borrowing. According to the guideline, financial institutions and enterprises registered in Guangdong FTZ, whose funds are raised from issuing Yuan stocks and bonds are allowed to be used in the FTZ. Also, banking financial institutions are encouraged to increase Yuan credit for overseas program.
In addition, individuals are allowed to have overseas investment with Yuan, including direct investment, securities investment and collective investment, etc. One of highlights in the guideline is that people from Hong Kong, Macao can purchase RMB financial products in Guangdong FTZ.