[BEIJING] China is simplifying currency rules for foreign direct investors, the country's currency regulator said on Wednesday, making another move to cut red-tape and spur private investment.
Reducing bureaucracy across the board is one of the changes pursued by Chinese authorities to allow market forces to play a bigger role in the world's second-largest economy.
In future, there will be no requirment to register or verify foreign currency brought into the country to fund direct investment, China's currency regulator, the State Administration of Foreign Exchange, said in an online statement on Wednesday.
Registration of foreign direct investors will be simplified also, and Chinese firms will not be required to file papers before moving foreign exchange out of China for overseas investment, the regulator said.
At the same time, oversight of banks will be increased to ensure they comply with existing laws, the regulator said.
The amount of cash that firms and individuals can move across Chinese borders is a sensitive issue for China as the authorities are slowly opening the capital account, and promoting international use of the yuan.