Capital account trading to see further opening

Strong-performing renminbi provides window of time for forex regime reform

Stable performance of the Chinese currency compared with global counterparts may pave the way for further liberalization of cross-border capital transactions, a long-lasting reform the central bank has always cautiously promoted, according to policymakers and advisers.

Foreign exchange investors recently upgraded their expectations for the renminbi - from a downward valuation in 2018 to a "moderate appreciation" this year - on growing optimism vis-a-vis US-China trade negotiations and expectations of a weaker US dollar.