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SAFE News
  • Index number:
    000014453-2019-0172
  • Dispatch date:
    2009-07-15
  • Publish organization:
    State Administration of Foreign Exchange
  • Exchange Reference number:
  • Name:
    Actively Reforming and Innovating Foreign Exchange Administration Policies and Promoting the Smooth and Healthy Development of Overseas Direct Investment
Actively Reforming and Innovating Foreign Exchange Administration Policies and Promoting the Smooth and Healthy Development of Overseas Direct Investment

In order to carry out the go-globaldevelopment strategy, further support the smooth and healthy development of overseas direct investment of domestic institutions, promote the facilitation of investment, take full advantage of markets and resources both at home and abroad, and promote the opening-up process of cross-border capital transactions in a steady and orderly manner, the SAFE recently issued the Regulations on Foreign Exchange Administration of Overseas Direct Investment of Domestic Institutions (hereinafter referred to as the Regulations), which will be implemented as of August 1, 2009.
Based on the integration of the foreign exchange administration policies and measures for overseas direct investment issued during recent years, and in conjunction with the online operation of the foreign exchange management information system for direct investment of the SAFE, the Regulations streamline and standardize foreign exchange administration modes and procedures for overseas direct investment, mainly including: First, the examination and verification procedures have been streamlined. The examination and verification of foreign exchange fund sources for the overseas direct investment have been altered from ex ante examination to ex post registration, and the examination and approval of outward remittances of overseas direct investment funds have been cancelled. Second, the foreign exchange fund sources for overseas direct investment of domestic institutions have been expanded. Domestic institutions can make overseas direct investments by use of various sources of assets such as self-owned foreign exchange funds, domestic foreign exchange loans in line with the regulations, foreign exchange purchased with RMB or tangible assets, intangible assets, and profits retained overseas. Third, domestic institutions are allowed to remit outward the preceding expenses up to a certain proportion of the total amount of investment at the preparatory stage prior to the formal establishment of their overseas projects after obtaining approval from the SAFE. Fourth, a full aperture foreign exchange administration system for overseas direct investment has been established. The foreign exchange administration of overseas direct investment of domestic financial institutions has been clarified and standardized. Fifth, the statistical and monitoring mechanism for cross-border fund inflows and outflows under overseas direct investment has been improved and perfected. During the course of drafting the Regulations, the SAFE extensively solicited opinions from various sources, and sought opinions from the general public via its official Web site. Relevant opinions and suggestions have been taken into full consideration.
The Regulations will help promote the standardization and systematization of foreign exchange administration of overseas direct investment, and are conducive for domestic institutions to timely grasp investment opportunities and increase the efficiency of overseas direct investment. In addition, the Regulations will play an active role in further perfecting the statistics and monitoring of overseas direct investment and promoting the basic equilibrium in the balance of payments. (End)





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