Foreign firms are prohibited from using offshore renminbi funds to invest in securities and financial derivatives in China, Xinhua news agency reported Monday, citing a statement from the Ministry of Commerce. They are also banned from using such funds for entrusted loans. Direct investment with offshore renminbi funds and re-investment by RMB-funded foreign firms are subject to antitrust regulations, the report said. However, foreign investors are allowed to change their funds to renminbi without prior approval and open bank accounts in the mainland.
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