Latest News:  
Beijing   Sunny    4 / -5   City Forecast

People's Daily Online>>China Business

'Chance' to open capital account

By Wang Xiaotian (China Daily)

09:33, February 24, 2012

A branch of the People's Bank of China in Hefei, the capital city of Anhui province. The PBOC says China wouldn't face huge risks if it opens up the country's capital account, a goal that was included in the 12th Five-Year Plan (2011-15).(Photo/China Daily)

Waiting for perfect timing could mean reform 'never' happens: Study


BEIJING - China has a "strategic opportunity" to ease curbs on capital flows to take advantage of lower valuations for Western companies and raise the yuan's global status, a central bank study has suggested.

China doesn't face great risks if it opens up its capital account, a goal that was included in the 12th Five-Year Plan (2011-15), the People's Bank of China publication Financial News reported on Thursday, citing a study by the survey and statistics department.

"If we wait until conditions for interest rate liberalization, currency liberalization and yuan internationalization all mature, we might never find an appropriate time to open up the capital account," said the report, written under the direction of head researcher Sheng Songcheng.

"Now is the time to do so because low valuations in overseas markets offer a rare investment opportunity for Chinese companies."

The Stoxx Europe 600 Index, even with an 8 percent rally this year, has fallen 34 percent since July 2007, driven down by global financial turmoil and the eurozone debt crisis.

"Too much emphasis on preconditions could easily make (a process of) gradual reform become negative and stationary, thus delaying the right time," the report said, adding that those presumed "preconditions" and the full convertibility of the yuan could promote one another simultaneously.

【1】 【2】 【3】

Email|Print|Comments(Editor:张茜)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Wen presides over meeting of national sci-tech, education leading group

  2. People visit Memorial Hall of Victims in Nanjing Massacre

  3. Paralyzed dog wheeling through life

  4. Suzhou wedding expo held in China's Jiangsu Province

Most Popular

Opinions

  1. China will run short of 25 kinds of minerals by 2020
  2. Fish out the loan sharks
  3. American-style democracy unsuitable for Iraq
  4. Finding out truth crucial to resolving Syrian crisis
  5. Deposit reserve ratio cut does not mean policy shift
  6. Is West genuinely trying to 'save' Syria?
  7. China's Linsanity
  8. Ancient technology education program launched
  9. Banks' reserve ratio cut aims to spur growth
  10. China, India should treat competition rationally

What's happening in China

'iPhone' gas burners seized in central China

  1. Solar Industry 12th Five-Year Plan issued
  2. Beijing to tighten car emission standard
  3. Porsche to recall 20,826 vehicles in China
  4. Graduate student needs a new name for hukou
  5. Drug trafficker suspected of killing cop nabbed

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai