New fund to allow for RMB convertibility

An economic zone in Tianjin may become the first area of China with a convertible renminbi. State media reported the pilot programme at Tianjin's Binhai New Area but did not give details of when it may start or how much the area would be allowed to convert. Large commercial banks in the Binhai New Area would also be allowed to engage in non-banking financial services. At the same time, the State Council has also approved a US$2.5 billion Bohai Industrial Investment Fund, the first such fund in the country that directly invests in companies.