On Nov. 16, CHI SAFE proposed to amend capital account forex guide.
CHI SAFE proposed to amend guidelines on forex business under capital account.
Follows CHI SAFE Jan. 2021 issued guide on forex under capital account, see #96202.
Amendments
Streamline chapters of the guidelines; original three parts of general administration, branch offices and banks into two parts: SAFE and bank; merge repetitve content.
Merge the registration and account management chapters of the same business.
Aligning connection, consistent with the latest regulations, and other requirements.
Add new business such as relocation of new corporate locations, digitization of capital projects, subscription of convertible bonds by foreign shareholders of A-share firms.
Clarify business requirements such as information disclosure for the registration of special purpose companies/the repurchase of funds raised from overseas listings.
Quota of qualified domestic institutional investors (QDII) cannot be transferred/resold.
Optimize business requirements such as registration process for foreign direct investment (FDI) enterprises established via equity transfers/mergers/acquisitions.
Cancel the restrictions on upfront expenses for overseas direct investment (ODI).
Optimize business management of cross-border financing/securities investment.
Effectiveness
Consultation is open for public which shall be submitted by Nov. 26, 2023.
Apr. 2024 Amendments Published
On Apr. 12, 2024, CHI SAFE issued notice re amendment to the guidelines, aims to facilitate institutions, individuals in handling capital account forex transactions.
Revisions refine, clarify business handling principles, enhancing operational efficiency.
Incorporate latest regulations and policy documents, updating relevant content accordingly; streamline chapters and optimize layout for clearer structure.
Feedback comments received, some implemented, including deleting bank from form headers, clarifying industry standards, revising expressions re cancellation reasons.
Suggestions for optimizing the information system were noted for future consideration.
Textual modifications were incorporated, policy interpretation issues were addressed.
