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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; the SAFE branches in Shenzhen, Dalian , Qingdao , Xiamen , and Ningbo ; and all designated Chinese-funded foreign exchange banks: In order to streamline administrative procedures and processes and promote facilitation of trade and investment, the SAFE hereby has decided to make adjustments to the approval authority for certain foreign exchange businesses under the capital account in accordance with the Administrative Licensing Law of the PRC and the Regulations on Foreign Exchange Administration of the PRC. The relevant issues are as follows: 1. Businesses for which the approval authority is delegated by the SAFE to the branches 1) For cases where domestic enterprises extend overseas loans in excess of the prescribed ratios or amounts, the branch or foreign exchange administrative department of the SAFE in the place where the enterprise is located (hereinafter referred to as the branch) shall handle such cases in line with the opinions proposed at the collective review conference. Meanwhile, the relevant replies thereof shall be forwarded to the Capital Account Management Department of the SAFE. 2) For cases that are in accordance with the administrative principles for capital accounts as stipulated in the existing laws and regulations, but are not specifically regulated in the relevant documents or business-operating instructions, the local branches shall handle such cases in line with the opinions proposed at the collective review conference. Meanwhile, the relevant replies thereof shall be forwarded to the Capital Account Management Department of the SAFE. 3) For verification of the balance quotas for the short-term external debt of domestic Chinese-funded enterprises, the local branches shall conduct such verifications within the range of the balance quota for the short-term external debt in the region according to the principles for such verifications as specified by the SAFE for the current year. 2. Businesses for which approval authority is delegated from the branches to the central sub-branches (sub-branches) The branches may, according to the specific situations in their respective jurisdictions, delegate authority for the following businesses to the corresponding central sub-branches (sub-branches) in their jurisdictions: 1) Verifications of fund transfers and opening, alterations and cancellations of special guaranty foreign exchange accounts for bidding for land-use rights by foreign investors; 2) Verifications of fund transfers/FX settlement and opening, alterations and cancellations of special foreign exchange accounts for foreign exchange funds (including the agreed upon price and transaction guarantee monies) under custody and settlement for equity transactions by foreign investors; 3) Examination and approval of payments in foreign exchange or entry of inward remittances of funds for overseas lending by domestic enterprises. 4) Examination and approval for recalling and settlement of funds for participation in employee stock ownership plans or employee stock options of overseas listed companies by domestic individuals. 3. Businesses that can be handled directly by designated foreign exchange banks 1) The examination and approval for foreign exchange purchases/payments made with the foreign investors profits from non-bank financial institutions in which the foreign investors (excluding insurance companies, and similarly hereinafter) hold shares shall be handled by the designated foreign exchange banks. Non-bank financial institutions in which foreign investors hold shares shall, within 5 working days following the date of the outward remittance of profits, file such transactions for the record with the bank receipt for foreign exchange purchases/payments at the SAFE branches/sub-branches. 2) The examination and approval of outward remittances of overseas IPO expenses from China by overseas listed foreign-invested companies shall be handled by the designated foreign exchange banks. Overseas listed foreign-invested companies shall, within 5 working days following the date of the outward remittance of the said expenses, file for the record the relevant data at the local SAFE branches/sub-branches. 4. Simplification of the materials required for business examination and approval Submission of the RMB Account Statement for the Latest 5 Working Days is no longer required when an enterprise handles business related to foreign exchange purchases under the capital account. Upon adjustment by the authority for the foresaid examinations and approvals, the SAFE branches and designated foreign exchange banks shall improve their internal control systems, reinforce employee training, strictly abide by the documents and operating instructions for the administration of foreign exchange businesses under the capital account, and fulfill the reporting procedures in line with the relevant regulations. (For the Operating Instructions for Designated Foreign Exchange Banks for Handling the Relevant Businesses, see the annex). The branches/sub-branches shall strengthen subsequent supervision and examination over the relevant issues thereof, and shall also further enhance the statistics and monitoring thereof. If any major circumstances or policy-related problems are encountered, please provide feedback to the SAFE in a timely manner. Upon receipt of this Circular, the SAFE branches and foreign exchange administrative departments shall forward it to the central sub-branches (sub-branches) and foreign-funded banks within their respective jurisdictions, and the Chinese-funded designated foreign exchange banks shall promptly forward it to the branches/sub-branches within their respective jurisdictions. The Circular will come into effect as of July 1, 2010. In case of any problems encountered during implementation, please send feedback to the Capital Account Management Department of the SAFE in a timely manner. Tel: 010-68402273. Annex: Operating Instructions for Designated Foreign Exchange Banks for Handling the Relevant Businesses 2010-06-29/en/2010/0629/706.html
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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; the branches in Shenzhen, Dalian , Qingdao , Xiamen , and Ningbo ; and all designated Chinese-funded foreign exchange banks: In order to prevent financial risks caused by cross-border flows of capital, issues related to the strengthening of the administration of foreign exchange operations are hereby notified as follows: 1. Strengthen administration of the banks comprehensive positions in the settlement and sales of foreign exchange. Implement a minimum level of management of the banks balance of positions calculated on a cash basis based on the current management of the comprehensive position limits for foreign exchange settlement and sales. The lower limit of the position shall be the position of the day on a cash basisas presented in the Daily Statement of the Comprehensive Position of Foreign Exchange Settlement and Sales issued by each bank on November 8, 2010. 2. Tighten administration of online inspections of foreign exchange collections and settlement for exports. Abrogate the provision that In the event that the enterprise has an insufficient balance of foreign exchange receivables due to a delay in the transmission of data on exports, the banks may, on the strength of the letter of commitment submitted by the enterprise, settle or transfer the funds in the accounts to be verified.The banks shall, in light of the limits on the balance of foreign exchange receivables, settle or transfer the funds in the accounts to be verified. The proportion of foreign exchange collection from the processing of imported materials shall be uniformly reduced from 30 percent to 20 percent. In the event that the proportion of the actual collection of foreign exchange for customs declaration for a single batch of exported goods under trade for the processing of imported materials exceeds 20 percent, the banks shall handle the relevant business in accordance with the existing regulations on foreign exchange collection for the processing of imported materials with the proportion of exchange collected in excess of the prescribed limit. 3. Strengthen administration of the quotas on short-term external debts and the balance of external guarantees of financial institutions. In the event that banks conduct agency payments abroad for the business subsequent to the issuance of L/Cs to their customers and the total time limit of both payments exceeds 90 days, the amount under the agency payment abroad shall be incorporated into the quota control of the short-term external debt. The foreign exchange authorities shall monitor and provide early warnings about the circumstances, such as the banksborrowing of short-term external debt and the provision of external guarantees for financing in violation of the regulations, and shall impose tight restrictions on bank operations in excess of the quotas. 4. Strengthen administration of capital contributions by overseas investors of foreign-funded enterprises. In the event that the actual payer is inconsistent with the overseas investor of a foreign-funded enterprise, the foreign-funded enterprise shall submit a notarized certification of the proxy contribution when entrusting an accounting firm to consult the foreign exchange authorities for capital verification. 5. Strengthen examination of the authenticity of the settlement of funds repatriated as capital raised from overseas listings in accordance with the requirements for foreign exchange settlements for payments. The materials certifying authenticity shall be examined in accordance with the relevant regulations on foreign exchange administration for the settlement of capital funds in foreign exchange for foreign-funded enterprises. The foreign exchange settlement shall be conducted in compliance with the purposes specified in the prospectus; for any amount that exceeds the planned limit on fund raising or goes beyond the purposes stated in the prospectus, a board resolution concerning the purposes of the foreign exchange settlement shall be submitted. The foreign exchange that is to be settled and paid to the other party in the transaction shall not be settled and deposited in the Renminbi account of the enterprise. 6. Strengthen administration of overseas incorporations of companies with special purposes by domestic institutions and individuals, and impose penalties on enterprises and individuals operating in violation of the regulations. 7. Impose penalties on banks operating in violation of the regulations by complying strictly with the law. Banks shall strengthen verification and examination of the authenticity of transactions by their customers and the consistency of foreign exchange receipts and payments. For those bank operations in violation of the foreign exchange regulations that result in illegal inflows of funds, the foreign exchange authorities shall impose penalties in the form of fines, termination of relevant operations, circulation of notices of criticism, and so forth, and shall investigate the responsibilities of the senior management staff who are directly liable for the violations. This Circular shall come into effect as of the date of promulgation. All the branches and administrative departments of the SAFE shall, after receipt of this Circular, forward it as soon as possible to the central sub-branches, sub-branches, and banks within their jurisdictions. All Chinese-funded designated foreign exchange banks shall, after receipt of this Circular, forward it to their branches and sub-branches as soon as possible. If any problems arise in the implementation of this Circular, please report them to the SAFE in a timely manner. Tel.: 010-68402295, 68402450, 68402366 2010-11-09/en/2010/1109/712.html
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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; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and all designated foreign exchange banks: In order to further satisfy the requirements of domestic economic entities to hedge exchange-rate risks, the relevant issues with regard to foreign exchange administration for Renminbi-against-forex currency swaps (hereinafter referred to as the currency swap) provided by the designated foreign exchange banks (hereinafter referred to as the banks) to their clients are hereby notified as follows: 1. The currency swap stated in the Circular refers to a trading agreement by which both parties of the agreement exchange agreed-upon quantities of Renminbi and principal in a foreign currency within a prescribed term, in parallel with the regular exchange of interest of the two currencies. The principal is exchanged in the forms of: (1) the exchange of the principal in Renminbi and the foreign currency by both parties as per the agreed-upon exchange rate on the date when the agreement becomes effective, and the reverse exchange of the principal based on the same exchange rate and quantity on the date when the agreement expires; (2) other forms as prescribed by the Peoples Bank of China and the SAFE. Interest exchange means that one party in question pays the other party in question the amount of interest computed based on the swap-in currency on a regular basis; the interest can be computed either based on a fixed rate or on a floating rate. 2. Any bank that has acquired a one-year qualification to operate Renminbi-against-forex swaps can directly launch currency swaps for its clients. The branches of banks (branches of foreign commercial banks are deemed to be legal persons) can launch currency swaps to their clients after being authorized by their legal persons thereof. 3. The transaction elements such as currencies and terms involved in the currency swaps provided by the banks to their clients are determined by discretion of the banks. The interest rate involved in the currency swaps shall be determined by both parties in question through negotiations, but it shall comply with the regulations of the Peoples Bank of China on the administration of deposit and lending rates. The banksinterest rate of the swap-in (or swap-out) currency shall not exceed the upper (or lower) limit of the benchmark deposit (or lending) rate publicized by the Peoples Bank of China . 4. The banks shall comply with the relevant provisions on foreign exchange administration and the statistical requirements with regard to the foreign exchange swap business as specified in the documents including the Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Foreign Exchange Administration for Forward Settlement and Sales of Foreign Exchange and Renminbi-Against-Forex Swaps Provided by Designated Foreign Exchange Banks to Their Clients (Hui Fa [2006] No. 52), the Circular of the State Administration of Foreign Exchange on the Distribution of the Statistical Rules for Foreign Exchange Settlement and Sales by Banks (Hui Fa [2006] No. 42), etc. The banks shall submit on a monthly basis a report on the interest rate of the Renminbi involved in the currency swaps. See Appendices 1 and 2 for details. 5. In operating the currency swaps, the banks shall incorporate the interest in foreign currencies earned from their clients into the foreign exchange earnings thereof for centralized management, and shall not separately carry out foreign exchange settlement. 6. In the event that the banks deal with currency swaps in violation of the Circular, the SAFE shall impose penalties thereupon in accordance with the Regulations of the Peoples Republic of China on Foreign Exchange Administration and the relevant laws and regulations. VIII. This Circular shall enter into force as of March 1, 2011. The branches and foreign exchange administration departments of the SAFE shall, upon receipt of this Circular, forward it immediately to urban commercial banks, rural commercial banks, rural cooperative banks, and foreign-funded banks within their jurisdictions. For any problems arising from implementation, please contact the Department of the Balance of Payments of the SAFE. The telephone numbers are: 010-68402304, 68402313. January 19, 2011 affix1:Statistical Form for Renminbi Interest Rates in Currency Swaps Provided by (the name of the bank) to Clients affix2:Instructions for Completing the Statistical Form on Renminbi Interest Rates in Currency Swaps Provided by Banks to their Clients 2011-01-30/en/2011/0130/718.html
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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; the branches in Shenzhen, Dalian , Qingdao , Xiamen , and Ningbo ; and all designated Chinese-funded foreign exchange banks: In order to promote the facilitation of trade and investment and to regulate foreign exchange receipts and payments concerning cross-border trade of environmental interests such as carbon dioxide emissions reductions, related issues are hereby notified as follows: 1. The cross-border trade of environmental interests including carbon dioxide emissions reductions stated in this Circular refers to cross-border trading in which a domestic institution sells or purchases environmental interests including carbon dioxide emissions reductions to or from an overseas institution. Domestic institutions and overseas institutions shall handle the business with regard to the foreign exchange receipts and payments involved in the aforesaid category of transactions in compliance with the relevant provisions in this Circular, the regulations on foreign exchange administration, and the relevant laws and regulations of the State. 2. The receipts and payments involved in the cross-border trade of environmental interests including carbon dioxide emissions reductions shall have real and legitimate transaction backgrounds. Domestic institutions shall, by virtue of the valid documents specified in Article 3 of this Circular, deal with the relevant businesses directly at the designated foreign exchange banks (hereinafter referred to as the banks). 3. When handling foreign exchange collections for domestic institutions under the cross-border trade of carbon dioxide emissions reductions, the banks shall examine the following documents: 1) The letter of application by the domestic institution; 2) The commercial invoice; 3) The contract for the trade of environmental interests such as carbon dioxide eissions reductions; 4) An official written reply from the National Development and Reform Commission regarding the trading of environmental interests such as carbon dioxide emissions reductions; and 5) A letter of verification on the actual emissions reductions issued by institutions designated by the United Nations. The banks only need to examine the documents specified in the foregoing three paragraphs with regard to the start-up fees paid by an overseas purchaser to a domestic institution for the purpose of consultation, assessment, filing an application with the United Nations, and so forth under the Clean Development Mechanism project. The banks only need to examine the documents specified in the foregoing four paragraphs for advances received from the sale of emissions reductions by domestic banks. For fees paid by overseas purchasers to domestic institutions for the purchase of carbon dioxide emissions reductions under voluntary emissions reductions, the banks shall examine the documents specified in the foregoing three paragraphs and the letter of verification on the actual emissions reductions issued by legitimate and authorized certification agencies; for start-up fees and advance payments paid by overseas purchasers to domestic institutions for the consultation, assessment, filing of applications to the relevant authorities, and so forth under voluntary emissions reductions, the banks only need to examine the documents specified in the foregoing three paragraphs. In the event that voluntary emissions reductions are subject to approval by the National Development and Reform Commission and other relevant authorities, the banks shall examine the official reply issued by the authorities thereof. The banks shall examine the authenticity of the relevant businesses in compliance with the provisions of the first three sections herein when dealing with foreign exchange payments under the cross-border trade of carbon dioxide emissions reductions by domestic institutions and the foreign exchange receipts and payments under other items of cross-border trade of environmental interests. 4. The banks may, when dealing with the procedures for the receipts from cross-border trade of environmental interests such as carbon dioxide emissions reductions, handle the settlement of foreign exchange for domestic institutions or open a Capital Account Foreign Exchange Account for Environmental Equity Trading (the code of an account of this nature is 2219) to preserve the relevant category of foreign exchange earnings after examining the materials proving the authenticity of the relevant transactions pursuant to Article 3 hereof and based on the needs of the domestic institutions. The receipts shall fall into the category of foreign exchange earnings under trade of environmental interests, and the payments shall fall into the category of payments under the current account and payments under the capital account approved by the State Administration of Foreign Exchange. Upon approval by the State Administration of Foreign Exchange, domestic institutions, such as the environmental exchanges, emission rights exchanges, and forest ownership exchanges, may open a Foreign Exchange Account for Cash Deposits from Special Trade (the code for an account of this nature: 3500). The receipts shall fall into the category of trading deposits by intended transferees and trading commissions and taxes to be paid by intended transferees; the payments shall fall into the category of foreign exchange margins that should be refunded to the transferees in cases of the failure of the transaction, the costs of deposits transferred to sellers after conclusion of the transaction, and commissions, taxes, and fees deducted by the exchanges. The banks shall submit to the State Administration of Foreign Exchange detailed information on the account opening, balance, receipts, and payments for the aforementioned two categories of foreign exchange accounts through the information system for the management of foreign exchange accounts in compliance with the regulations. 5. Prior to the opening of the Capital Account Foreign Exchange Account for Environmental Interests Tradingat the banks, domestic institutions shall register the basic information with the foreign exchange authorities in their localities according to their business licenses and organizational code certificates. Before opening the Foreign Exchange Account for Cash Deposits from Special Tradeat the banks, domestic institutions shall register the basic information with the foreign exchange authorities in their localities based on their business licenses and organizational code certificates. Domestic institutions that have already opened the aforesaid account prior to promulgation of this Circular shall, within 30 working days as of the date of promulgation, re-register the basic information with the foreign exchange authorities in their localities. 6. The foreign-related receipts and payments resulting from the sale or purchase of environmental interests such as carbon dioxide emissions reductions by domestic institutions shall be declared under the item of Capital Account Purchase/Waiver of Non-productive and Non-financial Assets Receipts from Expenditures/Payments for the Transfer of Ownership of Other Intangible Assets; the code for foreign-related receipts and payments is 502030.Under the remarks column for the relevant transactions shall be included: the sale (or purchase) of quotas of carbon emissions reductions (or the specific types of environmental interests trading based on the actual situation). The indirect declaration of BOP statistics for foreign-related receipts and payments generated from the Foreign Exchange Account for Cash Deposits from Special Tradeshall be handled in accordance with the Circular of the State Administration of Foreign Exchange on the Distribution of the Instructions for the Declaration of the Statistics on the Balance of Payments Through Financial Institutions (Hui Fa [2010] No. 22). 7. This Circular shall be interpreted by the State Administration of Foreign Exchange, and shall come into force as of the date of promulgation. Simultaneously, the reply of the General Affairs Department of the State Administration of Foreign Exchange on Conducting Foreign Exchange Business in terms of Emission Reductions Trade of Carbon Dioxide (Hui Zong Fu [2008] No. 27) shall be repealed. The branches and foreign exchange administrative departments of the SAFE shall, upon receiving this Circular, transmit it as soon as possible to the central sub-branches, sub-branches, foreign-funded banks, local commercial banks, and relevant units under their respective jurisdictions. All designated Chinese-funded foreign exchange banks shall, upon receipt of this Circular, immediately forward it to their subordinate branches. Please provide feedback to the SAFE in a timely manner regarding any problems arising from implementation of this Circular. Tel.: 010-68402350, 010-68402429 Fax: 010-68402430 December 3, 2010 2010-12-31/en/2010/1231/716.html
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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; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and all designated Chinese-funded foreign exchange banks: In order to increase the efficiency of the use of funds by domestic enterprises and to further promote the facilitation of trade and investment, the State Administration of Foreign Exchange has decided to implement the Interim Measures for the Administration of Overseas Deposits of Export Proceeds from Trade in Goods (hereinafter referred to as the Interim Measures,see Appendix 1 for details) on a nationwide scale as of January 1, 2011 in accordance with the Regulations of the Peoples Republic of China on Foreign Exchange Administration, based on the results of the pilot implementation. The Interim Measures and the Instructions for Operations (see Appendix 2) are hereby distributed, with the relevant issues notified as follows: 1. All branches and administrative offices of the SAFE shall comply with the Interim Measures when disseminating the policies on overseas deposits of export proceeds throughout the country, when providing training to branches within their jurisdictions and to enterprises that apply for overseas deposits of export proceeds, when strengthening publicity about the relevant policies, and when keeping a close eye on and addressing problems arising from implementation of the policies. 2. Pilot enterprises in the pilot regions that have received approval from the foreign exchange authorities for the operation of overseas deposits of export proceeds can make adjustments to the ways of reporting information about receipts and payments of the overseas accounts in accordance with the Interim Measures. 3. All branches and administrative offices of the SAFE shall, within the first five working days of each month, report the information about the overseas deposits of export proceeds of the previous month within their jurisdictions to the Current Account Management Department of the SAFE. The branches and foreign exchange administrative departments of the SAFE shall, upon receiving this Circular, transmit it as soon as possible to the central sub-branches, sub-branches, foreign-funded banks, local commercial banks, and relevant units under their respective jurisdictions. All designated Chinese-funded foreign exchange banks shall, upon receipt of this Circular, immediately forward it to their subordinate branches. With respect to any problems arising from implementation of this Circular, please provide feedback to the SAFE in a timely manner. Tel.: 010-68402450 December 27, 2010 2010-12-31/en/2010/1231/715.html
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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; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and the designated national foreign exchange banks: In response to developments and changes in foreign-related collections and payments and for the purpose of improving the declaration of balance of payments statistics by the declaring entities via domestic financial institutions, the SAFE has revised the Operating Rules on the Declaration of Balance of Payments Statistics via Financial Institutions (see annex), which have now been printed and distributed. All branches and foreign exchange administrative departments of the SAFE shall, upon receipt of this Circular, transmit it in a timely fashion to the sub-branches and banks under their respective jurisdictions for compliance. May 25, 2010 FILE: Operating Rules for the Declaration of Balance of Payments Statistics through Financial Institutions 2010-06-08/en/2010/0608/705.html
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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; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo: In order to meet the changing needs for indirect declaration of statistics on the balance of payments, to ensure and improve the quality of data declared indirectly on the balance of payments, and to further standardize the verification of the indirect declarations of the statistics on the balance of payments, the State Administration of Foreign Exchange formulated the System for the Verification of Indirect Declarations of Statistics on the Balance of Payments (see the Appendix for details), which is hereby issued for your implementation. All branches and foreign exchange administration departments of the SAFE shall, upon receipt of this Circular, forward it immediately to the sub-branches and banks within their jurisdictions. For any problems arising from implementation, please contact the Department of the Balance of Payments of the SAFE. Tel.: 010-68402448, 68402593; E-mail address: bop@bop.safe (Intranet). January 12, 2011 2011-01-20/en/2011/0120/717.html
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Purchasing quota of foreign exchange for domestic banks' overseas investment services on behalf of their clients approved for the first time. 2006-07-21/en/2006/0721/792.html
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China 's balance of payments in 2005 released 2006-04-28/en/2006/0428/783.html
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China 's balance of payments report in 2005 published 2006-04-28/en/2006/0428/784.html