Money

China eases FX rules for banks to venture abroad

(Agencies)
Updated: 2010-07-06 09:14

China is relaxing foreign exchange regulations slightly to make it easier for domestic banks to make direct investments overseas.

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Under the new rules, banks will no longer have to apply to the State Administration of Foreign Exchange for currency to fund overseas investments including the establishment of new branches, and mergers and acquisitions.

The change would take effect in September, SAFE said on Monday.

Banks expanding overseas will still have to obtain other approvals and provide SAFE with relevant information.

Chinese lenders have been actively setting up overseas branches and buying minority stakes in foreign banks in recent years.