Wenzhou allows individuals to invest abroad

China's eastern city of Wenzhou will allow individuals to make direct investments overseas as the government encourages capital outflows to ease pressure on inflation and currency appreciation, Bloomberg reported Monday.

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Citizens cannot exceed $3 million with any single investment abroad or spend more than a total $200 million each year, and may not invest in overseas financial companies, according to a notice on the Wenzhou Foreign Trade and Economic Cooperation Bureau's website posted on Jan 7.

Wenzhou, a city of about 8 million people in the coastal province of Zhejiang that borders Shanghai, had 32,595 yuan in per capita gross domestic product in 2009, about 30 percent more than the national average.