The Guangdong Branch of the State Administration of Foreign Exchange (SAFE) recently announced the official launch of two major pilot reform initiatives within the Hengqin Area and Nansha Area of the Guangdong Free Trade Zone.
These measures, which focus on the flexible use of capital account settlement funds and the optimization of refund disposal processes for Non-Resident Accounts (NRA), are designed to deepen cross-border investment facilitation and bolster the high-quality development of the open economy in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).
A primary highlight of this pilot program is the expanded autonomy granted to non-financial enterprises regarding their capital utilization. Under the new guidelines, foreign exchange income under the capital account and foreign debt—as well as the resulting settled RMB funds—can now be used to provide loans for non-affiliated enterprises, provided the transactions are authentic and compliant.
In addition to expanding fund usage, the reform specifically addresses long-standing operational bottlenecks associated with foreign exchange NRA accounts.
The new policy streamlines the disposal process for refunded funds by allowing them to be temporarily placed in a bank's internal account. If the disposal is not completed within 24 hours, the funds are then converted and returned via the original route.
This adjustment not only simplifies the administrative burden on businesses but also provides a crucial buffer that helps enterprises hedge against potential exchange losses triggered by currency volatility.
Reporter | Guo Chuhua
Photo | Hengqin Online
