China to simplify forex transactions

China is introducing sweeping changes on the foreign currency front. The State Administration of Foreign Exchanges, or SAFE, plans to simplify regulations surrounding foreign currency transactions from June.

Companies within China's special economic zones will for the first time be able to take profits derived from exports out of the country. The move follows growing demand from multinational firms.

Analysts say China's special economic zones are considered to be a test bed for currency reforms across the entire country.