Provided effective risk control mechanism is in place, restrictions on cross-boarder capital transactions will be relaxed in a selective and sequenced manner so as to gradually move toward capital account convertibility”.
Over the recent years, we have made great efforts in improving the RMB exchange rate regime and such efforts have resulted in the acceleration of the State-owned commercial banks reform, current account convertibility, reduced control over capital account transactions, increased openness of the capital market for foreign institutions and foreign-invested enterprises, and greater access to an increasingly diversified financial market.