Tag Archives: foreign exchange

CAPITAL VERIFICATION REPORT – STILL REQUIRED?
Mar. to Jun. 2015 China Bulletin

As reported in New Foreign Exchange Rules for FIEs, a foreign invested enterprise (FIE) in China should no longer be required to apply through the State Administration for Foreign Exchange (SAFE) to verify receipt of an injection of paid-in capital.  It need no longer hire a qualified CPA to produce a Capital Verification Report (CVR).  Instead, the FIE can request its SAFE-certified bank handle the capital registration procedure. Continue reading

CROSS-BORDER INVESMENT USING RMB
Oct. 2013 to Jan. 2014 China Bulletin

The Ministry of Commerce issued the Announcement on Issues regarding RMB Cross-Border Direct Investment, with effect from January 1, 2014 (English version).  The announcement permits foreign investors (including investors from Hong Kong, Macau and Taiwan) with RMB held outside mainland China to use it in China to establish companies, increase capital, purchase Chinese companies and participate in mergers and acquisitions and other direct investment activities.  The RMB funds may not be used to invest in negotiable securities, financial derivatives or entrusted loans in China. Continue reading

NEW CIRCULAR SIMPLIFIES FOREX APPROVAL STEPS
April-May China Bulletin

The State Administration of Foreign Exchange (SAFE) recently issued Circular 21, the Provisions for Administration of Foreign Exchange Relating to Inbound Direct Investment by Foreign Investors [2013] No. 21, with effect from May 13, 2013.   It consolidates many earlier foreign exchange provisions, and eliminates SAFE approval requirements for capital account transactions, opening bank accounts, purchasing foreign exchange, etc., replacing many of them with a registration requirement.  It also includes a guidebook that describes SAFE approvals and registrations, and lists procedures, paperwork, responsible agencies and criteria for issuance. Continue reading