Liberalizing the capital account has been highlighted in a slew of new initiatives China's Central Bank announced for the premier free trade zone in the commercial hub Shanghai.

Shanghai FTZ to pilot liberalized capital account

The People's Bank of China said it will consider a trial program allowing individuals in the Shanghai FTZ to directly buy overseas assets, including businesses, stocks and real estate. Individuals can only make overseas investments at the moment through third parties, such as banks and securities firms.

Foreign currency exchange quotas will also be increased from the current annual cap of 50,000 U.S. dollars. In addition, the Shanghai FTZ will allow more institutions and individuals to buy securities and futures in the domestic and overseas markets.

But the People's Bank of China did not give a clear timeframe for these pilot plans, saying the liberalization would happen "step-by-step".

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