Foreign investors optimistic on future openness

China's foreign exchange regulator will abolish 24 regulations regarding foreign exchange registration, account openings, remittance and conversions, further improve the investment environment in China for foreign investors and encourage more offshore investments.

These news rules reinforce the positive efforts from the new administration toward improving the investment environment in China.

President Xi reached out to foreign investors and experts in China shortly after taking office as the president, stressing the importance of China's continued economic engagement with foreign countries.

Many foreign investors are delighted with the move as they not only encourage foreign investment in China but also China companies investing overseas.

Peter Batey, Chairman of Vermillion Partners, said, "The goal is to ease investment into china by foreign companies, enable foreign companies reinvest profits into new enterprise or for expansion. Ease capital flow offshore, Chinese investment overseas. Both very important."

The recent global monetary easing and surge of the Chinese currency is causing more concern for "hot money" flowing into China. Batey says that liberalizing the foreign investment regime will not increase "hot money".

There are certain sectors in China's economy that are open to foreigners on any basis. But there are still some sectors of the economy in which foreigners are required to do joint ventures here and there is a maximum prescribe of foreign equity share. Foreign investors are keen on seeing more opening in all markets. As impatient as they are, they believe that given time, the full openness will be achieved.