Shanghai FTZ yuan conversion scheme may expand to other zones

Beijing plans to extend a pilot scheme allowing the yuan to be traded with few restrictions in the Shanghai free trade zone to other such zones in Tianjin, Guangdong and Fujian before the scheme goes nationwide later this year, Reuters reported, citing unnamed sources. “Once this is done, this will be a big step forward in opening China’s capital account,” said one of the sources, all of whom declined to be named as they were not authorized to speak to the media. The Shanghai FTZ pilot scheme allows firms to move the yuan and other currencies in and out of China for capital account transactions.