Shanghai is now planning a scheme to allow its citizens to invest overseas directly, said an official at the 2011 Shanghai Lujiazui Forum over the weekend.
In order to conduct investment overseas, current regulations require individual investors set up a company first. But, under the scheme, they could make overseas investments in foreign enterprises and foreign real estate markets without such a requirement, according to a report in the Oriental Morning Post Sunday.
Xu Quan, an official with the Shanghai municipal government, said the proposal was handed to the State Council last year.
Guo Tianyong, director of the Research Center of China Banking at the Central University of Finance and Economics, said encouraging individuals to conduct overseas investment could help balance the country’s foreign exchange reserves, which may exceed $3.2 trillion this year.
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