Cancel The "Double Q" Quota And Approve When Mr. Yuan Is Ready.

< p > > as "a href=" //www.sjfzxm.com/news/index_c.asp "> RMB > /a > capital account convertibility," double Q "system (i.e. QFII and QDII) is once again placed heavy responsibility.

In its annual report 2013, the central bank stressed the need to accelerate Renminbi capital account convertibility.

When conditions are ripe, the qualification and quota approval shall be disqualified and the relevant investment facilities shall be extended to all legitimate institutions both inside and outside the country.

I believe that the key to the abolition of the dual Q quota is whether the domestic capital market can enter a healthy development track, but this variable will not affect the process of RMB capital account convertibility.

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< p > in recent years, RMB < a href= "//www.sjfzxm.com/news/index_c.asp" > capital account < /a > convertibility has aroused widespread concern at home and abroad, and has also aroused heated debate.

Now, as the central bank's high-profile stance means that the process of RMB capital account convertibility will speed up, the biggest obstacle to RMB internationalization will soon be eliminated.

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In the third Plenary Session of the 18th CPC Central Committee, the party made a clear plan for capital account convertibility, and put forward "promoting two-way opening of capital market, orderly raising cross border capital and financial paction convertibility, establishing and perfecting the management system of foreign debt and capital flow under the framework of macro Prudential Management, and accelerating the realization of RMB capital account convertibility." P

This is a step farther than the "12th Five-Year plan" and the eighteen major reports, "gradually realizing the convertibility of RMB capital items", which marks the beginning of this process to a new stage of accelerated development.

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At present, China has become the second largest economy in the world. After the economic growth has taken the initiative to downgrade, the macro-economy is still expected to maintain medium and high speed growth in the long term. The reform of the financial sector has made remarkable achievements, and the ability to resist risks has been greatly improved. The RMB capital account convertibility has made positive progress, laying a solid foundation for the eventual realization of convertibility of capital account P.

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< p > for example, as a two-way opening of the capital market, < a href= "//www.sjfzxm.com/news/index_c.asp" and "double Q" system < /a >, the remarkable achievements in recent years have accumulated experience for RMB capital account convertibility.

By the end of 2013, the total investment amount of QFII was approved by US $49 billion 701 million, and the QDII investment quota was US $84 billion 232 million.

At the same time, administrative licensing projects under capital account decreased by more than 60%, and the policy effect and social response were good.

As of May 30th this year, the QDII investment quota decreased by 7 billion 439 million US dollars compared with the end of last year, and the QFII investment quota increased by US $6 billion 17 million.

From the perspective of scale, "double Q" is forming a new pattern of two-way interaction.

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< p > international experience shows that currency internationalization is an effective means to realize the rise of a country. Therefore, internationalization of RMB has become a natural choice for China's economic development.

RMB capital account convertibility is an important indicator of RMB internationalization.

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< p > especially after the 2008 international financial crisis, it is generally accepted that capital account convertibility is an institutional arrangement with flexibility and adjustment. After convertibility, it is necessary to manage capital flows. This will help China cope with potential risks after capital account liberalization.

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< p > speeding up the convertibility of RMB capital account is also a demand for China's economy to develop itself to a higher level. Speeding up this process will help to promote economic structural adjustment and pformation and upgrading, create an upgraded version of China's economy, improve the effectiveness of macroeconomic regulation and control, reduce inflation expectations, improve the balance of payments situation, promote capital outflow into the basic balance, promote the pformation of government functions and enhance economic vitality; promote trade and investment facilitation and improve economic efficiency; meet the needs of people's multi-level investment; relate to the level and level of opening up to the outside world; use two kinds of resources at home and abroad; develop two domestic and foreign markets; and play an important role in reshaping the international order in order to enhance China's international influence and discourse power.

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< p > finally, RMB capital account convertibility will be pushed forward in an active and prudent manner. The cancellation of double Q quota approval will become a landmark event in this process.

The development of domestic capital market will become an important item in the progress of approving the double Q quota.

If the domestic capital market can go on the track of healthy development in the short term, it is just around the corner to cancel the "double Q" quota approval. If the domestic capital market is still in chaos for a long time, the abolition of the "double Q" quota approval can only be a beautiful vision.

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