James T. Areddy for the Wall Street Journal says that the Securities and Exchange Commission (SEC) will sign a memorandum of
understanding with the China Banking Regulatory Commission within the
next few days.
What this means is that Chinese banks can now create U.S.
stock funds for clients. Chinese fund companies are already able to
sell products that invest in U.S. markets, but banks are not free to
roll out their own stock funds. Bank branches are the key platform for
selling financial products in the country.
Treasury secretary Henry
Paulson is rumored to have put pressure on China to relax its capital
controls in an effort to allow investment abroad.
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