PBoC says, China allows an initial group of overseas central banks and other institutions to enter its inter-bank foreign exchange market

HKMA, RBA, the World Bank Trust Funds  and seven institutions have finished registration with the China Foreign Exchange Trading System. This is a move which indicates their official access to the FX market.

They would be allowed to conduct RMB and forex trading of one or more traded foreign exchange products, which includes spots, forwards, swaps and options.

"This is another move from Chinese authorities to open more access to foreign investors, and is one of the key requirements for SDR's inclusion of RMB. But CNY/CNH spread remains at an elevated level, which suggests that the cross-border arbitrage mechanism is not working efficiently", says Commerzbank in a research note.