The State Council has renewed its pledge to maintain the yuan at a stable and balanced level and cut red tape in the foreign exchange sector as part of measures to stabilize foreign trade, investment and expand opening-up.

In a statement following its executive meeting on Oct 23, the Cabinet said it had adopted 12 measures to improve foreign exchange management and boost cross-border trade and investment.

A pilot reform dealing with foreign exchange receipts and payments facilitation will be expanded, and limits on the number of foreign currency accounts under capital accounts will be removed to make foreign trade and investment easier.

Premier Li Keqiang said at the meeting that it has been the government's consistent position to maintain a stable exchange rate for the yuan and a reasonable level of foreign reserves, which were of vital importance to macroeconomic stability.

He also highlighted the importance of preventing risks from cross-border capital flows and ensuring a stable financial sector.

The country's foreign exchange reserves — the world's largest — rose by $19.7 billion from the beginning of this year to $3.09 trillion by the end of September, according to the State Administration of Foreign Exchange.

Wang Chunying, a spokeswoman for the administration, told a news briefing on Oct 25 that the measures adopted at the State Council meeting were a step toward reform aimed at further cutting red tape and improving government oversight and services and pushing forward the supply-side structural reform of the financial sector.

It would simplify procedures for businesses seeking access to services, expand their funding channels and bolster support of domestic companies in conducting trade and investment overseas, she said.

"It will also further reduce corporate burdens, stimulate market vitality and unleash dividends of policies," she said.

Wang said China's economic fundamentals would continue to be a strong pillar for the stability of its foreign exchange market, and policies to expand opening-up would also play a positive role.

Chinese banks recorded net foreign exchange sales of $48.2 billion in the first three quarters of this year, the administration said.

The reform will also give banks and foreign trade businesses greater autonomy, with measures to simplify procedures for receipts and payments for micro-sized and small cross-border e-commerce companies and refine the foreign exchange reporting process for trade in goods, she said.

The meeting on Oct 23 also decided to allow enterprises to make their own decisions on whether to set up verification accounts.

It also pledged steps to facilitate the registration of foreign exchange receipts and payments for trade for enterprises and their subsidiaries and give project contractors the green light to put their overseas funds under unified management.

The reform also gives foreign companies engaged in noninvestment businesses in China the go-ahead for equity investments, a policy that Wang said will benefit 99 percent of the over 370,000 foreign-invested companies in China.

A pilot program that makes it easier for businesses to make payments in China through their capital accounts will be expanded from 12 pilot free trade zones to the six newly established free trade zones and Shanghai.

Banks based in the Guangdong-Hong Kong-Macao Greater Bay Area and Hainan province will be allowed to transfer their credit assets, including trade finance, to overseas investors, the Cabinet said.

In another measure to improve the business environment and facilitate foreign trade, the Standing Committee of the National People's Congress endorsed a Cabinet decision to pilot adjustments in six laws, including the laws on foreign trade, road transport safety, food security and customs. The pilot program will last three years.

Approvals such as business registrations for conducting foreign trade and offering firefighting related services will be canceled. Instead of applying for approvals, businesses conducting sales of packaged food products and registering for customs clearance will only need to file records with the authorities.