Central bank pleges to continue opening financial market
By Zhang Lu (China Daily)
Updated: 2006-09-22 08:41
"The government will gradually loosen its control over the renminbi's capital
account convertibility and push for free convertibility of the yuan in a stable
manner," Zhou said.
Currently the country has no timetable for widening the yuan's trading band.
"It depends on whether the band is enough for the market," he said, responding
to questions seeking details of the band widening.
Also during yesterday's financial forum, Xiang Huaicheng, head of the
National Social Security Fund, revealed that the fund plans to invest an initial
1 billion yuan (US$125 million) in the Bohai Industrial Investment Fund.
The Bohai fund, the first such equity fund in China, is being prepared and
may be established at the end of September or later, the China Securities
Journal reported earlier, citing the Mayor of Tianjin Municipality Dai
Xianglong.
The Chinese newspaper said the fund's total scale will be 20 billion yuan
(US$2.5 billion), with an initial investment of 6 billion yuan (US$750 million).
"If the Bohai fund is proved a success, the national social security fund
will look to expand into other such investment funds in the future," Xiang told
reporters. The fund will also start investing abroad soon, with European markets
among potential destinations, he said.
By the end of August, the social security fund had total assets of 230
billion yuan (US$28.75 billion) and had invested in a variety of financial
instruments on the domestic market including bank deposits, stocks, bonds and
trust funds.
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