Pilot system will monitor capital flow (3)

But some concerns have been aired.

"This is not a good time for China to accelerate lifting its control of capital accounts and making the yuan more convertible, given the large scale of capital inflow into emerging markets since the US announcement of a new round of quantitative ease in September," said Danny Quah, professor at the London School of Economics and a former member of Malaysia's National Economic Advisory Council.

A country must establish a sound market-oriented domestic financial system before opening up capital accounts, he said.

It is vital for emerging markets to cooperate with each other in monitoring cross-border capital flow and in reducing the risks of currency exchange-rate fluctuation, Pan Gongsheng, a deputy governor of China's central bank said in November.

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