China may move towards capital account liberalization

IMF's Executive Board revised the Special Drawing Rights (SDR) basket and included CNY in the basket which will be effective from October 2016 and continue for next five years. This is a huge political victory for China. After the IMF's approval now renminbi assets is worthy of holding in central banks' FX reserves. 

In order to expand the domestic market, China may gradually move towards capital account liberalization.

"Thus, the most important near-term effect is that it will keep financial liberalization high on the agenda of Chinese authorities", says Nordea Bank.