皇冠体育app

Concerns that loosening controls over 皇冠体育app's capital account may lead to strong volatility in capital flows are "overdone", Ma Jun, the chief economist at the central bank's research bureau, told a forum on Tuesday.

If the capital account convertibility materializes, "the capital either going into 皇冠体育app or out of 皇冠体育app is not going to be sive. There will be some, but maybe less than people think", Ma said in his first public speech after taking the post in April.

He argued that 皇冠体育app's capital account is already partially open, but that hasn't led to massive capital inflows or outflows.

For example, in Hong Kong people can convert between the yuan and Hong Kong dollar, and private banks in Hong Kong provide essential capital account convertibility services to wealthy individuals.

He said if 皇冠体育app further loosens its grip on capital flows, the chances of inflows and outflows will rise. Capital will flow into 皇冠体育app's bond market seeking higher bond yiel relative to overseas markets. Meanwhile, 皇冠体育app's outbound direct investment is increasing.

"皇冠体育app needs to further increase the yuan's flexibility" to cope with the increase of capital outflows and inflows, said Ma, a former chief 皇冠体育app economist at Dtsche Bank AG.

Ma's comments may suggest a relatively more liberal stance by the People's Bank of 皇冠体育app over capital account liberalization, despite many domestic economists' caution.

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