China is lifting some currency controls for multinational companies to ease the movement of capital and help them cut costs, the Wall Street Journal reported over the weekend.
The new policy allows domestic and foreign firms with at least US$100 million in foreign exchange income in the past year to transfer capital more freely under a trial scheme, the report said, citing the State Administration of Foreign Exchange.
China maintains a closed capital account which prevents companies and individuals from moving money in or out of the country except under certain restrictions
The limit for individuals is US$50,000 a year while corporate investments need government approval.
China is opening its capital account gradually as part of a broad program to ease controls over its financial system, the report said.
The foreign exchange regulator said companies that have complied with the rules, have not had any serious violations in the past three years or are not under regulatory monitoring could be included in the trial scheme.
The program would be gradually carried out with priority given to firms with solid internal risk controls, the report said.
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