Previous month:
February 2012
Next month:
November 2012

1 post from June 2012

SAFE Relaxes Foreign Exchange Control to Encourage Chinese Private Companies Invest Overseas

To address the challenges faced by private companies to finance overseas investment and to simplify the foreign exchange control policies for outbound investment activities by private companies, SAFE released new rules " the Circular of State Administration of Foreign Exchange on Foreign Exchange Administration in Relation to Encouraging and Guiding the Healthy Development of Private Investment" (Hui Fa [2012] No.33) (the “Circular”) on 11 June 2012. The Circular simplifies the regulation processes for the remittance of foreign direct investment capital as well as offshore loans granted by domestic enterprises and relaxes the administration of external guarantee provided by Chinese individuals. The Circular's main content includes: Simplifying the management of outbound direct investment capital remittance. The balance between the total investment amount of the outbound direct investment by a Chinese enterprise and that of the pre-registered overseas investment capital with the government can be remitted back to China after registering the remittance with SAFE. Previously, domestic enterprises needed to register and report the amount of realized investment overseas and deduct the total pre-registered investment capital before they could remit the balance back to China. Simplifying the administration of offshore loans. The Circular allows domestic companies to use foreign currency loans borrowed... Read more →