Management over external debt of Chinese and foreign banks and the foreign exchange lending in their domestic operation has been strengthened and extended aggregate volume control over the external borrowing of domestic and foreign banks. Implementation of the going abroad strategy is supported by easing the restriction of domestic fund transfer and overseas investment.
Foreign financial institutions are granted further market access through the introduction of QFII and the RMB denominated bond issuance by international development agencies. On July 21, 2005, we reformed the RMB exchange rate regime in a self-initiated, controllable and gradual manner.