BEIJING, April 20 -- The government will abandon quotas for how much domestic companies can buy in foreign currency for investment abroad, the China Business News reported yesterday, in the country's latest move to balance its international payments.

    The report came as domestic companies have become increasingly prominent on the world stage as buyers of overseas companies and assets.

    Among major deals, top Chinese computer maker Lenovo Group Ltd. last year bought U.S. company IBM's personal computer business for US$1.25 billion, making it the world¡¯s third-largest maker of PCs.

    "In the future, if any firms win approval to invest overseas, they could freely buy foreign currencies needed for the investment from banks," Guan Tao, an official at the State Administration of Foreign Exchange, was quoted as saying.

    "We now want to strengthen the support for overseas investment by Chinese companies," Guan was quoted as saying.

    "We want to expand channels for foreign currencies to flow out of the country, which is why we are poised to abolish the corporate overseas investment quotas."

    The government last Friday relaxed other capital controls to make it easier for individuals and firms to buy foreign currency and invest abroad, including allowing domestic banks to invest in financial products outside the mainland on behalf of Chinese citizens.

    The foreign-exchange watchdog set a policy in 2005, giving companies in selected regions a combined US$5 billion in quotas to buy foreign currency to invest overseas. Within the quotas, corporations could freely choose investment targets.

    (Source: Shenzhen daily/Agencies)