The Shanghai free trade zone is likely to pilot a program to allow free renminbi convertibility under the capital account, the Securities Times reported Monday, citing unnamed sources. Banks and other financial institutions in the zone will be able to lend at the market rate, and companies in the FTZ will be allowed to issue bonds denominated both in renminbi and other currencies, it said. The FTZ will also encourage the establishment of private banks and Sino-foreign joint venture lenders. However, restrictions are expected to remain for natural persons in the zone to invest in stocks or funds overseas.
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