BEIJING, April 13 (Xinhua) -- China's central bank announced on Thursday the relaxation of controls on foreign exchange accounts, simplifying approval procedures for foreign exchange payments in the service trade, and procedures for individuals to buy foreign currencies.

    The People's Bank of China will also allow qualified banks to pool capital in Renminbi, the Chinese currency, from domestic institutions and individuals for overseas investment in products with fixed returns under an unspecified quota system.

    It will allow fund management firms and other securities institutions to invest in a combination of stocks and other overseas securities using foreign currencies gathered from domestic institutions and private sources.

    The bank said it would allow qualified insurance institutions to buy foreign currencies for investment in overseas products with fixed returns and money market instruments.

    The amount of foreign currency purchased would be under a "certain portion" of the total assets of the insurance institution.

    The bank said the new policies would be implemented in cooperation with other departments, while closely monitoring international payments, and readjusting policies to prevent risks and safeguard the country's economic and financial security.