China to expand pilot freeing capital account convertibility: sources

[BEIJING] China plans to expand a trial that frees its capital account to three other free-trade zones in coming months, and will broaden the experiment before the end of this year, three sources with direct knowledge of the matter said on Friday.

The moves are milestone measures in liberalising China's capital account, and are a crucial step in turning the yuan into a convertible currency that can be traded freely around the world.

The experiment, which gives companies the freedom to move the yuan and other foreign currencies in and out of China, is currently being run only in the Shanghai free trade zone.

The sources declined to be named as they were not authorised to speak to the media. The central bank did not comment when contacted for this story.

REUTERS