Beijing, Nov 01: China said on Friday it would allow businesses in some regions to invest more money abroad in its latest move to deflect US pressure for a revaluation of its yuan currency. Fourteen trial provinces or regions would be allowed to approve overseas investments of up to $3 million, versus a previous ceiling of $1 million, the State Administration of Foreign Exchange (SAFE) said on its website.

"Provincial foreign exchange administrations can approve proposals for foreign exchange capital of overseas investment projects with a limit of $3.0 million," it said in a statement on www.safe.gov.cn. The measures will take effect on November 1.
In other moves this year to ease upward pressure on the yuan, China has cut export incentives, tightened rules on lending to property investors and restricted quotas for foreign banks investing in Chinese stocks and bonds.
The announcement comes hours after a much-anticipated report from US Treasury Secretary John Snow ducked local lawmakers' call for more strident action to punish Chinese exporters. Bureau Report