The Ministry of Commerce (MOC) announced on 16 Dec. that it will further ease control on cross-border yuan direct investment in an effort to facilitate investment.

Under the new MOC regulation, approval procedures for RMB-denominated direct investment from overseas investors will be further simplified. The new regulation will takes effect on Jan. 1, 2014.

In cross-border RMB direct investment, foreign investors use legally acquired RMB to make investments in China by founding companies, increasing investment, or participating in mergers and acquisitions of domestic enterprises, the MOC said in a statement.

Foreign investors are still not allowed to invest in negotiable securities, financial derivatives, and entrusted loans in RMB.

The existing regulation, which took effect in 2011, requires provincial bureaus to report to the MOC for further approval if foreign investors' RMB investment hits 300 million RMB ( USD49 million) or more, or if their investment is in sectors such as financing guarantee, financial leasing, micro credit, auctions, cement, steel, electrolytic aluminum or shipbuilding.

The new regulation raises no such requirements. Overseas investors also include those from Hong Kong, Macao, and Taiwan in accordance with  the Regulation.