The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; and the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo:

To further clarify the administrative principles and relevant issues in the application of the Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Administration for Financing and Return Investments by Domestic Residents through Special-Purpose Overseas Companies (HuiFa No.75 [2005]) and to simplify the operational process, the Operational Rules on Foreign Exchange Administration for Financing and Return Investments by Domestic Residents through Special Purpose Overseas Companies is hereby printed and distributed (see the Appendix). Please observe and implement it.

The Circular will come into effect as of July 1, 2011.  Where there is any discrepancy between this Circular and the provisions regarding specific processing basis, processing period, relevant authority for implementation, required application materials, and so forth with respect to foreign exchange registration relating to foreign direct investments, foreign exchange payment approvals, foreign exchange registration of overseas investments, approvals of outward remittances of capital thereof, the opening, changing, closing, and cancellation of foreign exchange accounts, and approval of the maximum amount allowed to be reserved in the account under the Circular of the General Affairs Department of the State Administration of Foreign Exchange on Printing and Distributing the Operational Rules for Foreign Exchange Administration  under the Capital Account (2009 version) (HuiZongFa No. 77 [2009]) and the Circular of the State Administration of Foreign Exchange on the Promulgation of the List of Administrative Licensing Items (HuiFa No. 43 [2010]), this Circular shall prevail.

May 20, 2011