One of the pivotal issues in the international political and financial arena is the question of when and how China will permit the appreciation of the renminbi yuan and the free bilateral movement of China’s capital account to ease the imbalances within the international financial system.
Additionally, Chinese regulators have recognised the need to broaden the limited channels of overseas investments currently available to domestic Chinese institutions and individuals. Given the rapid growth of the Chinese economy, the burgeoning trade surplus and the high rate of domestic savings, China’s foreign exchange reserves have grown to an estimated $1.3trn (£690bn) in personal savings.
