People's Bank of China, Measures for the Administration of Renminbi Settlement Matters Relating to Foreign Direct Investment

Issued: October 13 2011
Effective: as of date of issuance
Interpreting authority: People's Bank of China

Applicability: These Measures shall govern the handling of renminbi settlement matters relating to foreign direct investment by banks (Article 2). In the event of a discrepancy between these Measures and previous relevant provisions, these Measures shall prevail (Article 30).

Main contents: When a foreign enterprise, economic organisation or individual (hereinafter collectively referred to as “Foreign Investor”) wishes to carry out the procedures for renminbi settlement matters relating to foreign direct investment, it may, in accordance with provisions for the administration of bank settlement accounts, apply to open a renminbi settlement account for a foreign institution. In accordance with the principle of the dedicated use of dedicated accounts, a dedicated renminbi startup cost deposit account and a dedicated renminbi reinvestment deposit account shall be opened and renminbi startup cost funds relating to an investment project and renminbi funds derived from profit distribution, liquidation, capital reduction, equity transfer, early recovery of investment, etc. that are to be used for domestic reinvestment shall be deposited into such accounts respectively. Cash receipt and payment may not be carried out through such accounts (Article 5). Where a Foreign Investor wishes to remit the renminbi profits it has earned out of China, the bank may directly carry out the procedures after examining the relevant materials, such as the profit disposal resolution of the foreign-invested enterprise and proof of payment of taxes (Article 12).