State Administration of Foreign Exchange and China Securities Regulatory Commission, Issues Relevant to Further Improving the Foreign Exchange Control for Overseas Listing Circular

Issued: August 5 2002
Effective: September 1 2002
Interpreting authority: State Administration of Foreign Exchange and China Securities Regulatory Commission
Applicability: For the purposes of this Circular, "overseas-listed foreign investment share companies" refers to companies that are registered domestically and listed overseas; and "overseas-listed Chinese-controlled companies" refers to overseas-listed companies that are registered overseas and controlled by Chinese investors (Section One).

Main contents: The Circular requires the domestic shareholders of overseas-listed foreign investment share companies and overseas-listed Chinese-controlled companies to complete their foreign exchange registration for overseas share listing with the State Administration of Foreign Exchange (SAFE) within 30 days of approval by the China Securities Regulatory Commission (CSRC) of their overseas issue and listing of shares (Article 2). Funds raised in the issue and listing of shares of overseas-listed foreign investment share companies and the proceeds from the disposal of equity or assets of overseas-listed foreign investment share companies and overseas-listed Chinese-controlled companies shall be remitted to China within 30 days of receipt unless otherwise permitted by SAFE (Sections Three and Four). Domestic shareholders of overseas-listed Chinese controlled companies are also required to complete foreign exchange registration for their overseas asset or equity injections (Section Seven). CSRC approval shall be required and SAFE registration shall be changed if overseas-listed shares are repurchased (Article 8). Overseas-listed foreign investment share companies and overseas-listed Chinese-controlled companies that were listed before the issue of the Circular shall complete foreign exchange registration for overseas listing within three months from the date of issue of the Circular (Article 9).
Repealed legislation: State Administration of Foreign Exchange, Issues Relevant to the Opening and Use of Foreign Exchange Accounts of Overseas-listed Enterprises Circular, 1997