China equity reform to boost future FX

The reforms, which will allow qualified institutional investors to buy yuan-denominated equities, are expected to see an influx of foreign cash flowing into China. Analysts believe in the near term that restrictions on foreign investors may hamper a run in the yuan.

One such restriction is the minimum investment period of one to three years for foreign investors, a restriction that will make speculative trading impossible and will reduce the impact of any resulting FX flows.

However, the move

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