In an effort to globalize the yuan and promote “capital account convertibility” the Chinese who are part of the Shanghai Free Trade (SFZ) may be able to make their own direct investments into overseas market. This would be an unprecedented move and would be one element of a government test.

The goal of the SFZ is in part to help boost China’s economic structure. It has a project that has been in the works for more than two years. Situated in Pudong New Area, it is hoped that it will ultimately span the entire Pudong district, measuring 1,210.4 square kilometers.

One of the advantages of the plan is that those using it will not be penalized with foreign exchange restrictions. There will be limits but not nearly as stringent as they currently are.