SAFE Head: China Eyes More Openness for Its Bond Market after Recent Rule Relaxations

(Beijing) – Recent moves taken by the Chinese government to relax restrictions on foreign institutions investing in the country's bond market have given some of them open capital account treatment, Pan Gongsheng, deputy governor of China's central bank who heads the State Administration of Foreign Exchange, wrote in a commentary published by Caixin.

As of 2015, he wrote, China's bond trading rules for foreign central banks and similar institutions – which refer to sovereign wealth funds and global financial institutions such as the World Bank – have fully met the standards for capital account convertibility, which means cross-border financial capital flows can happen without or with minimum government restrictions.