Beijing backs down on offshore rules

Restrictions on mainlanders setting up and investing in offshore vehicles are expected to be relaxed by the end of the year under a new legal framework drafted by the central government, the South China Morning Post reported. The new rules proposed by the State Administration of Foreign Exchange (SAFE) allow individuals to register with local foreign currency exchange bureaus for offshore investment transactions. Restrictions issued earlier this year preventing mainland residents from setting up or holding shares in offshore companies have been blamed for the drop in the value of merger and acquisition deals.