State Administration of Foreign Exchange, Circular on Issues Relevant to Foreign Exchange Control Involved in the Restructuring of Foreign-invested Banks

国家外汇管理局关于外资银行改制所涉外汇管理有关问题的通知

April 02, 2007 | BY

clpstaff &clp articles &

SAFE sets forth procedures concerning foreign exchange matters in the restructuring of foreign-invested banks.

Clp Reference: 3810/07.03.20 Promulgated: 2007-03-20

Issued: March 20 2007

Main Contents: The Circular covers the following foreign exchange control issues involved in the restructuring of branches of foreign banks into wholly foreign-owned banks:

(1) business qualifications: qualifications for engaging in businesses of spot settlement and sale of foreign exchange, forward settlement and sale of foreign exchange, swaps between renminbi and foreign currencies, and other derivatives between renminbi and foreign currencies; membership in the foreign exchange market; QFII custodian business qualifications and QDII business qualifications (Article 1);

(2) administration of synthetic positions in the settlement and sale of foreign exchange (Article 2);

(3) transfer of working capital in foreign currency and conversion between renminbi and foreign currencies;

(4) accounts for the settlement and sale of foreign exchange; and

(5) administration of indicators for short-term foreign debts and balance of security provided to foreign parties.

Related Legislation: PRC Regulations for the Administration of Foreign-invested Banks (2nd Revision) ; Circular on Adjusting the Measures for the Administration of the Positions for Settlement and Sale of Foreign Exchange of Banks, Sept 22 2005, CLP 2005 No.9 p.6; Circular on Matters Relevant to Verifying the Limits of Synthetic Positions in the Settlement and Sale of Foreign Exchange of Banks, 2005; Circular on the Examination and Approval Principles and Procedures for the Capital and the Settlement and Sale of Foreign Exchange for Financial Projects of Banks, 2004; and Tentative Measures for the Administration of Foreign Exchange Settlement and Sale Business by Designated Foreign Exchange Banks, Nov 16 2002

clp reference:3810/07.03.20promulgated:2007-03-20

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