Four pillars of fi nancial reform

Interest rate liberalization

Latest： On December 8， 2013， PBOC gave approval for interbank negotiable certifi cates of deposit.

Next： Allow certifi cates of deposit for ordinary bank customers.

Finale： Cap on interest rate on deposits is removed.

Capital markets reform

Latest： On February 19， 2014， the China Insurance Regulatory Commission raised the ratio that insurance companies are allowed to invest in securities from 25% of total assets to 30%.

Next： The China Securities Regulatory Commission （CSRC） must ditch its IPO-approval system and adopt a registry for new listings.

Finale： China’s capital markets are highly diversifi ed and stock exchanges are regulated effi ciently， protecting domestic retail investors and attracting foreign institutional investors.

Foreign exchange reform

Latest： On March 17， 2014， PBOC widened the daily trading band of the yuan from 1% in either direction to 2%.

Next： PBOC interferes less with the daily referencing rate that sets the price the yuan starts trading at.

Finale： The yuan trades freely on international markets.

Capital account liberalization

Latest： On April 10， 2014， the CSRC and the Hong Kong securities regulator announced a program that will give investors in Hong Kong and Shanghai limited access to each other’s bourses.

Next： Issue new rules on how capital fl ows between the mainland and the Shanghai free trade zone

Finale： Foreign investors can easily access China’s capital markets and domestic investors can freely access international markets.