-
For the purpose of meeting the growing demand for domestic and foreign currency exchange by individuals, in August 2008 the SAFE initiated a pilot implementation of domestic and foreign currency exchange business to individuals in the localities of Beijing and Shanghai. Building on the results of the pilot implementation, the SAFE recently expanded the range of this pilot implementation and perfected the Measures for the Administration of the Pilot Implementation of Domestic and Foreign Currency Exchange Franchise Business to Individuals. There are four aspects to this expansion: first, the range of the pilot implementation has been expanded to 13 provinces, municipalities, and autonomous regions including Beijing and Shanghai, as well as 4 cities specifically designated in the state plan; second, the number of franchise operations institutions has been increased, and cross-regional chains of franchise operations institutions via the establishment of branches in the pilot areas are encouraged; third, relevant exchange procedures have been streamlined, viz. for small amounts of exchange business under USD 500 for each transaction, after completing the relevant procedures, the operations institutions are allowed to append the transaction data to the information system for the administration of settlement and sales of foreign exchange to individuals; fourth, regulatory compliance and operational conveniences have been taken into account in the pilot implementation, and the requirements for supervision of franchise operations institutions have been clarified. The expansion is expected to further satisfy the demand for domestic and foreign currency exchange by individuals in foreign-related economically strong regions, international tourist hubs, as well as border/port regions (apart from Beijing and Shanghai). The move will also stimulate fair competition in the market of domestic and foreign currency exchange to individuals, make the most of the advantages of the franchise operations institutions with respect to their business hours, vast diversity of exchange currencies, as well as their operational flexibility, and will upgrade the overall level of Chinas domestic and foreign currency exchange services to individuals. 2009-12-23/en/2009/1223/910.html
-
In order to further increase the transparency of foreign exchange administration and facilitate public comprehension and mastery of knowledge regarding foreign exchange administration, the State Administration of Foreign Exchange (SAFE) has compiled an Overview of Foreign Exchange Administration (hereinafter referred to as the Overview), in which the purpose, framework, business administration principles, key policy points, and so forth on foreign exchange administration are elaborated. In parallel with its promulgation, the contents of the Overview have been posted on the official Web site of the SAFE (www.safe.gov.cn). The Overview is composed of six sections. Each section gives a brief introduction to the framework of forex administration, forex administration of current accounts, forex administration of capital accounts, statistics and monitoring of the balance of payments, forex business of financial institutions, and operation and administration of forex reserves, etc. A directory of commonly-used laws and regulations related to forex administration is included in the Overview, to serve as a reference for comprehension of relevant laws and regulations applicable to the related businesses. Other parts of the Overview such as the RMB Exchange Rate and Foreign Exchange Market, the Inspection and Applicability of the Laws and Regulations on Foreign Exchange Administration, and so forth will be promulgated after compilation of the Overview is completed. The Overview will serve as an outline and summary of the objectives, policies, measures, and other important issues related to foreign exchange administration. It is promulgated to facilitate comprehension by the general public of issues related to foreign exchange administration. The Overview shall not be deemed to be legally binding. 2009-12-04/en/2009/1204/909.html
-
(News Release of the SAFE October 14, 2009) Beginning in April 2006, the SAFE implemented a nationwide system of information disclosure on (negative) foreign exchange violations, and at regular intervals has announced to the public information about cases of foreign exchange violations through open disclosures and public queries. To the present, the SAFE has announced information on over 600 enterprises that have committed foreign exchange violations and escaped punishment, thus effectively protecting the environment for normal operations and competitive order in the foreign exchange market. In order to coordinate with the 2009 nationwide activity of the Month of Advocating the Running of Business with Integrity,the SAFE again announced information on 110 enterprises that committed foreign exchange violations and escaped punishment, which had been discovered from foreign exchange administration and inspections since the third quarter of 2008. On the one hand, the disclosure of information on enterprises that escaped punishment reminds the society to pay attention to such illegal enterprises, in particular to take measures to avoid damages on compliant enterprises that carry out normal production and operations by their continuation of such illegal acts. On the other hand, the disclosure warns other foreign exchange-related subjects about their foreign exchange income and expenditure activities, thus enhancing the notion of honesty with respect to trade in foreign exchange income and expenditure, guiding foreign exchange-related subjects to self-regulate, and creating an honest, committed, and normative foreign exchange market environment. 2009-11-13/en/2009/1113/906.html
-
August 20, 2007 - The SAFE recently approved a pilot program for direct foreign portfolio investments by domestic individuals, in which individual residents can directly conduct foreign portfolio investments with proprietary foreign exchange or with foreign exchange purchased with RMB through relevant channels in the pilot areas. With the rapid and stable development of China 's national economy these years, the income levels of domestic individuals have improved substantially and the diversification of their investment demands has been increasing day by day. In addition, China 's abundant foreign exchange capital offers favorable conditions for direct foreign portfolio investments by domestic individuals. The SAFE chose the Tianjin Binhai New Area to pilot direct foreign portfolio investment by domestic individuals. It main contents include: First, individual residents can directly invest in foreign securities with proprietary foreign exchange or with foreign exchange purchased with RMB. The investment size is not limited to the foreign exchange purchase quota of USD 50,000 per year stipulated by the Detailed Rules on Measures for the Administration of Individual Foreign Exchange. Second, the investment will be handled through the BOC Tianjin Branch and Hongkong BOCI Securities Limited. Investors should open foreign exchange accounts for individual foreign portfolio investment in the BOC Tianjin Branch and entrust it to open corresponding securities agency accounts in Hongkong BOCI Securities Limited. Third, during the early stage of the experiment, investors can invest in securities publicly listed in Hong Kong Exchanges and Clearing Limited (HKEx). Fourth, the principal and gains of the foreign exchange purchased with RMB can be held in the form of foreign exchange or the investors can sell the foreign exchange to the banks where they open the accounts. If the investors want to sell the principal and gains of the proprietary foreign exchange, the corresponding affairs should be handled according to the Detailed Rules on Measures for the Administration of Individual Foreign Exchange. Fifth, the principle of assuming the risks by the investors is implemented. The business agencies should faithfully point out the investment risks. Meanwhile, they should strengthen internal risk control, carry out relevant laws and regulations, improve the information disclosure mechanism, and guarantee the legal rights and interests of the investors. The pilot program for direct foreign portfolio investment by domestic individuals will help promote the orderly development of individual foreign investment and accumulate related supervision and risk prevention experience. The lifting of the exchange restrictions on individual foreign investment is a helpful trial for the optimization of the asset allocations of domestic individuals, dispersing investment risks and increasing investment gains through the international financial market. Meanwhile, this trial is an important measure to deepen the reform of the foreign exchange administration system, to expand the outflow channel of foreign exchange capital, and to promote a general equilibrium in the balance of payments. 2007-08-20/en/2007/0820/846.html
-
Shanghai Pudong Development Bank's purchasing quota of foreign exchange for overseas investment services on behalf of its clients approved 2007-08-31/en/2007/0831/849.html
-
Agricultural Bank of China 's purchasing quota of foreign exchange for overseas investment services on behalf of its clients increased 2007-08-31/en/2007/0831/848.html
-
China Southern Fund Management Co., LTD.'s purchasing quota of foreign exchange for overseas portfolio investment approved 2007-08-31/en/2007/0831/850.html
-
China Southern Fund Management Co., LTD.'s purchasing quota of foreign exchange for overseas portfolio investment increased 2007-09-14/en/2007/0914/852.html
-
Deutsche Bank AG's purchasing quota of foreign exchange for overseas investment services on behalf of its clients approved. 2007-08-24/en/2007/0824/847.html
-
Harvest Fund Management Co.,LTD's purchasing quota of foreign exchange for overseas portfolio investment approved 2007-09-26/en/2007/0926/853.html