orSign up

Follow us:
wechat

SAFE Relaxes Foreign Exchange Control of Round-trip Investments

2014-August-4       Source: Newsgd.com

On 4th July, 2014, SAFE released the Circular on Issues concerning the Foreign Exchange Administration for the Offshore Financing and Round-trip Investments by Chinese Domestic Residents through Special Purpose Vehicles ("SPVs") (the "Circular"), with effect from the date of promulgation. The Circular is aiming at reforming the foreign exchange management of Round-trip investment as well as broadens capital outflow channels.

On 4th July, 2014, the State Administration of Foreign Exchange ("SAFE") released the Circular on Issues concerning the Foreign Exchange Administration for the Offshore Financing and Round-trip Investments by Chinese Domestic Residents through Special Purpose Vehicles ("SPVs") (the "Circular"), with effect from the date of promulgation. The Circular is aiming at reforming the foreign exchange management of Round-trip investment as well as broadens capital outflow channels.

The Circular allows Chinese domestic residents to purchase, convert, and remit foreign currencies for the purposes of establishing offshore SPVs and operating offshore. The Circular also cancels the original registration formalities for the establishment, financing and changes in financing of offshore SPVs, with the content of a change required to be registered simplified, and at the meantime, it removes the restrictions on the granting of loans by domestic companies to their offshore SPVs. In addition, the Circular broadens the usage of offshore capital and allows the offshore capital to be remained in offshore by cancelling the compulsory capital refund requirement, which requires the Chinese domestic residents to transfer the interest and gains from the offshore SPVs within 180 days of acquisition.

(This information is provided by Lawyer Kelly Xie from Guangdong KaiTong Law Firm in friendship. It is not any legal opinion or legal grounds addressed to any organization or individual. For inquiry, please contact Kelly via email at Kelly_xie@ktlf.com.cn or by phone on 13926185641.)

Editor: Echo

Scan to share on WeChat

Scan to follow us on WeChat

0
Most popular
Day |
Week |
Month
Key Words

Home|About us|Contact us|Southcn.com

WWW.NEWSGD.COM. All rights reserved.

WWW.NEWSGD.COM. All rights reserved.|Registered number 020074| 粤公网安备 44010402000511号|ICP备案号 粤B-20050235-8