SAFE Adjusts Approval on Certain Capital Projects for Foreign Exchange Business

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Jul. 2 – The State Administration of Foreign Exchange has adjusted approval on certain capital projects for foreign exchange business, effective July 1, 2010, with the aim of further simplifying administrative and approval procedures and better facilitating investment and trade environment.

SAFE’s local branches will determine and approve short-term foreign debt indicators for domestic-funded enterprises; central branch offices will manage the bidding and settlement for foreign investors for the land and property rights, as well as the change, cancellation of foreign exchange accounts and the settlement of transactions; central branch offices will also be responsible for foreign loans and payment of repatriation for domestic enterprises, approval of the settlement of individual employee’s stock plans on the listed companies outside of Mainland China.

Furthermore, the circular also simplifies the documents for business approval. Enterprises will no longer need to submit the statement of the RMB account five days in advance when purchasing capital projects relating to foreign exchange business.