SINGAPORE (Apr 30):  Essential to increasing the momentum of the Belt and Road Initiative (BRI) is the acceleration of reform in capital markets.

Following the announcements by President Xi Jinping and China’s new central bank governor Yi Gang at the recent Boao Forum for Asia, China is relaxing the limits on outbound investments by wealthy individuals and institutions for the first time in two years. This reflects a stable economy and stronger currency, which shows the country is more confident that it has capital outflows under control. It is also a necessary precondition to increased momentum in the rollout of BRI projects.

The approval of new quotas to a scheme that allows foreign fund managers to raise money from Chinese investors could free up billions of dollars in Chinese capital to invest overseas.

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