China Growth Stocks

[Shengli]

China Expands Easing of Capital Controls on Exporters

WSJ


BY AARON BACK

BEIJING—China on Saturday eased capital controls on exporters' foreign-currency earnings, a move that over time could damp inflationary pressures and slow growth in the massive foreign-exchange reserves that have made Beijing a heavyweight global investor.

The move, an expansion of a program allowing exporters to keep their foreign-currency earnings overseas instead of changing them into yuan, was announced Friday. It could eventually ease pressure on the Chinese currency to appreciate by reducing demand for the yuan from exporters—although ultimately China's political leadership controls the exchange rate and the impact of such market forces is limited.