The Measures for the Administration of Personal Foreign Exchange clearly stipulates that domestic individuals can directly use RMB to purchase foreign exchange and engage in the following overseas securities investments:
(1) China residents can directly invest in foreign financial products such as stocks and bonds. Seventeenth domestic individuals to buy B shares and make overseas equity, fixed income and other financial investments approved by the state, should be handled through domestic financial institutions with corresponding business qualifications in accordance with relevant regulations.
(2) China residents' income from overseas investment can be settled in China through normal channels. Article 19 Income from legitimate capital projects obtained by domestic individuals abroad may be settled with the approval of the foreign exchange bureau.
(3) China residents can directly participate in foreign commodity futures and financial derivatives transactions. Article 21 Domestic individuals who provide loans, borrow foreign debts, provide external guarantees and directly participate in overseas commodity futures and financial derivatives transactions shall comply with relevant regulations and go through corresponding registration procedures at the foreign exchange bureau.
(4) Overseas individual investors still can't directly participate in domestic stock and bond market investment, but they can buy B shares in China. "Article 23 Unless otherwise stipulated by the state, overseas individuals may not purchase domestic equity and fixed income financial products. The purchase of B shares by overseas individuals shall be handled in accordance with relevant state regulations. "
It can be seen that with the continuous enhancement of China's economic strength and international competitiveness, China's foreign exchange reserves are growing rapidly, and the appreciation potential of RMB is increasing. In this context, on the one hand, because the central bank and the central government have gained considerable confidence in macro-control, the conditions for convertibility under the gradual opening of RMB capital projects are basically met; On the other hand, in order to release the excessive pressure of RMB appreciation, it is necessary to relax foreign exchange control and then implement the strategy of "storing foreign exchange for the people". Therefore, under the background of economic internationalization and globalization, it is necessary to take the lead in relaxing individual foreign exchange control, allowing domestic residents to invest in overseas developed and mature securities markets, and allowing China people to go abroad to participate in competition and share the fruits of world integration. It is not difficult to predict that in the future, with the promotion of capital account convertibility, foreign exchange transactions in individual capital will be gradually and orderly relaxed.