RMB convertibility refers to the convertibility of RMB under current account and capital account. Current account includes: commodity trade, service trade, dividend payment and free transfer. Capital projects include direct investment and indirect investment (such as stocks, bonds, international loans and deposits, etc.). ).
China exercises strict control over foreign exchange. Generally speaking, after the implementation of RMB current account convertibility, if it is a transaction under current account such as normal foreign trade, foreign capital can be freely converted from foreign currency to RMB or from RMB to foreign currency. If it is a transaction under the capital account, it will be strictly examined, such as investing in stocks and bonds in China. At present, foreign capital can only enter China through QFII.