Q: Foreign media reported that Deutsche Bank is discussing remitting overseas its gains from selling shares in Huaxia Bank with the State Administration of Foreign Exchange. Is it true?

A: This is not true. There is no policy barrier against the business in foreign exchange administration. According to the existing foreign exchange administration regulations, any foreign institution who wants to transfer the shares it holds in a domestic institution may directly go through the formalities for foreign exchange purchase and payment related to share transfer with a bank, and can do so after passing the authentic and compliance reviews by the bank, with no need of ex-ante approval or verification by the SAFE. Foreign exchange authorities support every authentic and compliant cross-border equity transfer transaction in a bid to promote trade and investment facilitation.