China May Allow Its Citizens to Buy up to US$200,000 Foreign Currencies Each Year

According to a recent report published in the China Securities Journal, the City of Wenzhou, Zhejiang Province has become the first Chinese city to allow private citizens to invest in overseas projects. The report stated that the city had already unveiled a pilot project that allowed its citizens to invest up to US$200 million abroad annually. According to the pilot program, individuals who are over 18 years old and have registered their legal residence in the City of Wenzhou and have passports would be allowed to make direct overseas investments.  Applicants are not be allowed to invest in countries that do not have diplomatic ties with the People's Republic of China.
Mr. Zhou Xiaoping, a local economic and foreign trade affairs, said that the pilot program is aimed at creating a regulated overseas investment channel for individuals, encouraging private investors to take part in international commercial cooperation and liberalizing the city's economy.

Chinese citizens are currently only allowed to exchange a maximum of US$50,000 worth of foreign currencies annually.  A recent news report indicated that Chinese government is ready to loosen its foreign exchange policy and allows private citizens to buy a maximum of US$200,000 worth of foreign currencies.  If the policy becomes effect, more Chinese citizens will be interested in investing in foreign countries.