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a

more powerful

52.

In order to establish a clear authority over the

supervision of stock

it exchanges,

current State Council Securities merge with the China Securities Regulatory Commission to

form

is proposed that the Policy Committee should

Committee.

This new

State

committee,

Securities

Management

with a network of local

offices, will possess greater power particularly in curbing insider trading and market manipulation.

(iii) The foreign exchange system

53.

Reportedly, SAEC is going to be brought back into PBOC, probably within a year. The intention is to bring the implementation of overall monetary policy,

policy, exchange

rate policy and foreign exchange management under one roof.

54.

а view

markets

system,

foreign

A project is in progress with SAEC linking up all the swap centres throughout the country by early 1994, with to improving the operational efficiency of the swap and unifying the swap market rates. Under the new

exchange can be transferred between centres, and this flexibility will contribute greatly to exchange rate uniformity and market integration. Also, the

retention

foreign exchange

will quotas gradually changed into a system of actual foreign exchange holdings. In future, the state-owned banks specialised in foreign exchange dealings will assume a more active role in intervening in the swap markets where necessary, so as to stabilise the exchange rate of the

influence

for system

or

to

be

Renminbi.

55.

target

As to full

date is

very

convertibility tentatively

set at

of the Renminbi, the 1998 (16)

The

(16)

A senior Chinese official has indicated that it will probably take about five years for China to adjust in that direction, in the interest of strengthening its case for re-entry into GATT.

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