China to “Study the Feasibility of Allowing Domestic Individuals to Invest in Foreign Securities and Insurances”

​China Forex, a magazine under China's State Administration of Foreign Exchange (SAFE), published an interview with Ye Haisheng, SAFE’s Head of Capital Account Management Department, providing insights on how China will open up wider to the international market.

In reply to China Forex’s question of “What is the SAFE’s plan to promote high-level high-quality opening up in 2021?” Ye Haisheng said:

“In 2021, we will pursue progress while ensuring stability under the guidance of the State Council. We will map out plans for opening capital account in the future, launch high-level opening-up trials in an orderly manner, and enable individuals to exchange foreign currencies more easily. Reforms and opening up will be deepened to give impetus to new developments. The foreign exchange management mechanism will be reformed and improved to fit our new economic system that opens up at a higher level when facing new development trends.” 

Ye also mentioned specific measures taken by the authority to relax the controls on individuals.

“We will study the feasibility of loosening controls over capital account for individuals. We will revise regulations and rules concerning individuals taking part in equity incentive plans of overseas listed companies. The annual purchase limit of $50,000 worth of foreign currency per person will be lifted, and management process will be optimized. We will study the feasibility of allowing domestic individuals to invest in foreign securities and insurances under the $50,000 cap. The SAFE will join hands with the People’s Bank of China (PBoC) in launching “Cross-border Wealth Management Connect Trials” in Guangdong-Hong Kong-Macau Greater Bay Area.”

The SAFE is going to select eligible securities companies to launch cross-border  trials in order to ensure the sound development of “foreign exchange settlement and sales by banks on behalf of clients”.

China allowed qualified individuals in the free trade zone to invest in foreign securities at the end of 2020, according to the Circular on Measures to Deepen Reforms and Innovation in Pilot Free Trade Zones released by the State Council on November 23, 2020.