In order to further regulate and improve foreign exchange administration for overseas listings of domestic enterprises, the SAFE issued the Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Administration for Overseas Listings (HuiFa [2012] No.5) (hereafter the Circular). The Circular entered into effect as of the date of promulgation.

The Circular integrates and improves foreign exchange administration policies for overseas listings of domestic enterprises by highlighting the following: First, with administration of registration as the core, examination of business procedures and materials is simplified significantly. As long as the enterprises complete the registration procedures related to overseas listings as required, they can handle relevant procedures at the banks, such as the opening of accounts and the exchange of funds, without further approval by the foreign exchange authorities. Second, the business of fund exchanges to increase (or decrease) the overseas shares of domestic shareholders is regulated, providing a definite basis for the relevant businesses to follow. Third, the ongoing capital account information system of the foreign exchange authorities is integrated, improving and perfecting the systems and means of data collection and statistics and monitoring with respect to overseas listings, improving scientific and effective regulation while enhancing facilitation of the business processes.