Today, the Policy Research Office of China’s National Development and Reform Commission released a report stating that it will refine relevant regulatory provisions to allow individual investors to engage in overseas investments.

　　The NDRC stated in its report: “ The next step is to strengthen macro-guidance for overseas investment and improve the legal framework and management system. We will accelerate the legislative development of overseas investment by formulating and issuing the “Regulations on Overseas Investment” and their implementing rules. We will also reform the approval system for overseas investment and promote greater facilitation of such investments. …… Improve relevant regulatory provisions to allow individual investors to engage in overseas investments. ”

　　Currently, China is implementing the Qualified Domestic Institutional Investor (QDII) program. QDII Under this system, individuals within the country may only conduct overseas financial investments—such as fixed-income and equity investments—through qualified domestic institutional investors, including banks, funds, and trusts.

　　Although this represents an important step toward China’s opening up of the RMB capital account, China still has a long way to go before gradually allowing individuals to invest abroad.

　　 - 2014 Year 5 Moon 8 On [date], the State Council of China proposed that it would... “ Steadily open up direct investment by overseas individuals into the domestic capital market, and promote in an orderly manner direct investment by domestic individuals into overseas capital markets. ”。

　　 - 2013 Year 12 Moon 2 On [date], the People's Bank of China released the “Opinions on Financial Support for the Construction of the China (Shanghai) Pilot Free Trade Zone,” which has set the direction for individuals’ direct overseas investment. The “Opinions” propose that— “ Facilitating individual cross-border investments ” , pointing out “ Individuals employed within the zone and meeting the relevant requirements may, in accordance with regulations, engage in various types of overseas investments, including securities investments. ” However, according to the Shanghai Free Trade Zone Management Committee, although the central bank has already issued a policy document allowing individuals within the zone to engage in direct overseas investment, since the relevant operational guidelines have yet to be released, individual direct overseas investment activities within the free trade zone have not been implemented as of now.

　　 - 2013 Year 5 Moon 24 On [date], China’s National Development and Reform Commission issued the “Regarding...” 2013 Opinions on Key Tasks for Deepening Economic System Reform this Year,” which for the first time proposed establishing qualified... “ Regime for Overseas Investment by Domestic Individual Investors ”。

　　- As early as 2008 Year 8 Moon 5 On [date], the State Council passed legislation stipulating: “ Domestic institutions and domestic individuals engaging in direct investment abroad or in the issuance and trading of overseas securities and derivative products shall, in accordance with the regulations of the foreign exchange administration authority under the State Council, complete registration procedures. Where the state stipulates that prior approval or filing with the relevant competent authorities is required, such approval or filing procedures shall be completed before foreign exchange registration. ”。

　　- The State Administration of Foreign Exchange had already... 2007 The statement indicated that, in line with the progress toward RMB capital account convertibility, China will gradually relax controls on domestic individuals’ provision of loans to overseas entities, borrowing of foreign debt, offering overseas guarantees, and directly participating in trading of overseas commodity futures and financial derivatives.

　　With the continued economic development and growing investment awareness among Chinese citizens, there is a demand in China for individuals to make direct overseas investments. 2013 Year 5 Moon 7 On the day, China Merchants Bank and Bain & Company jointly released the “ 2013 According to the "China Private Wealth Report," more than... 30% high-net-worth individuals, exceeding 50% Ultra-high-net-worth individuals hold overseas investments. Among these overseas investments, fixed-income products, real estate, and stocks are the mainstream investment categories for China’s high-net-worth population. Hong Kong is the primary market for investing in overseas assets.