BEA China completes overseas RMB investment settlement

The move enables Xinjiang companies to use renminbi to engage in business abroad, while allowing foreign companies make renminbi investment into Xinjiang companies.

The Bank of East Asia (China) Limited, a local-incorporated wholly owned subsidiary of the Hong Kong-based Bank of East Asia (BEA), has completed first overseas renminbi direct investment settlement in Xinjiang.

China kicked off the trial cross-border renminbi direct investment settlement in Xinjiang from October 2010.

According to the interim rules, Xinjiang-incorporated companies can directly use renminbi to set up enterprises abroad or invest in overseas enterprises, and foreign companies can make renminbi investment into companies in Xinjiang.

This is the country's first such trial after the cross-border renminbi trade settlement, aiming to give the Chinese currency a greater role internationally. The trial scheme can fuel more economic growth for the restive but resource-rich Xinjiang.

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