Chinese Monetary Reforms

The Chinese government has been making a number of changes in the financial sector that have the potential to be very beneficial to foreign companies. Foreign companies now have unprecedented access to Chinese stock exchanges, which means the ability to tap into a great source of capital not previously available. Regulatory changes have allowed Chinese banks to become more sophisticated in their products and are better able to serve more complicated deals. Reforms have also made it possible for foreign companies to use the Renminbi (RMB, the Chinese currency) in cross border trade settlements. For those making a long term investment in China, using the RMB in account settlements has the potential for greater return on investment as the value of the currency increases.