Circular on Issues Relevant to Exchange Control in Connection with Offshore Investment/Financing and Round-trip Investment by Residents in China Through Special Purpose Vehicles

关于境内居民通过特殊目的公司境外投融资及返程投资外汇管理有关问题的通知

The Circular broadens the meaning of "special purpose vehicle" from having financing as its objective to investment and financing as its objectives.

Clp Reference: 3800/14.07.04 Promulgated: 2014-07-04 Effective: 2014-07-04

(Issued by the State Administration of Foreign Exchange on, and effective as of, July 4 2014.)

(国家外汇管理局于二零一四年七月四日发布施行。)

汇发 [2014] 37号

国家外汇管理局各省、自治区、直辖市分局、外汇管理部，深圳、大连、青岛、厦门、宁波市分局；各中资外汇指定银行：

为充分发挥市场在资源分配中的决定性作用，支持国家“走出去”战略的实施，充分利用国际国内两种资源、两个市场，进一步简化和便利境内居民通过特殊目的公司从事投融资活动所涉及的跨境资本交易，切实服务实体经济发展，有序提高跨境资本和金融交易可兑换程度，根据《中华人民共和国外汇管理条例》等规定，现就境内居民通过特殊目的公司境外投融资及返程投资外汇管理有关问题通知如下：

一、本通知所称“特殊目的公司”，是指境内居民（含境内机构和境内居民个人）以投融资为目的，以其合法持有的境内企业资产或权益，或者以其合法持有的境外资产或权益，在境外直接设立或间接控制的境外企业。

本通知所称“返程投资”，是指境内居民直接或间接通过特殊目的公司对境内开展的直接投资活动，即通过新设、并购等方式在境内设立外商投资企业或项目（以下简称外商投资企业），并取得所有权、控制权、经营管理权等权益的行为。

本通知所称“境内机构”，是指中国境内依法设立的企业事业法人以及其他经济组织；“境内居民个人”是指持有中国境内居民身份证、军人身份证件、武装警察身份证件的中国公民，以及虽无中国境内合法身份证件、但因经济利益关系在中国境内习惯性居住的境外个人。

本通知所称“控制”，是指境内居民通过收购、信托、代持、投票权、回购、可转换债券等方式取得特殊目的公司的经营权、收益权或者决策权。

二、国家外汇管理局及其分支机构（以下简称外汇局）对境内居民设立特殊目的公司实行登记管理。境内居民个人设立的特殊目的公司登记及相关外汇管理，按本通知执行。境内机构设立的特殊目的公司登记及相关外汇管理，按现行规定和本通知执行。

三、境内居民以境内外合法资产或权益向特殊目的公司出资前，应向外汇局申请办理境外投资外汇登记手续。境内居民以境内合法资产或权益出资的，应向注册地外汇局或者境内企业资产或权益所在地外汇局申请办理登记；境内居民以境外合法资产或权益出资的，应向注册地外汇局或者户籍所在地外汇局申请办理登记。

境内居民个人应提交以下真实性证明材料办理境外投资外汇登记手续：

（一）书面申请与《境内居民个人境外投资外汇登记表》。

（二）个人身份证明文件。

（三）特殊目的公司登记注册文件及股东或实际控制人证明文件（如股东名册、认缴人名册等）。

（四）境内外企业权力机构同意境外投融资的决议书（企业尚未设立的，提供权益所有人同意境外投融资的书面说明）。

（五）境内居民个人直接或间接持有的拟境外投融资境内企业资产或权益，或者合法持有境外资产或权益的证明文件。

（六）在前述材料不能充分说明交易的真实性或申请材料之间的一致性时，要求提供的补充材料。

境内机构按《国家外汇管理局关于发布<境内机构境外直接投资外汇管理规定>的通知》（汇发[2009]30号）等相关规定办理境外投资外汇登记手续。

境内居民办理境外投资外汇登记后，方可办理后续业务。

四、境内居民及其设立的特殊目的公司，不得危害我国国家主权、安全和社会公共利益；不得违反我国法律法规；不得损害我国与有关国家（地区）关系；不得违反我国对外缔结的国际条约；不得涉及我国禁止出口的技术或产品。

境外特殊目的公司登记不具有证明其投融资行为已符合行业主管部门合法合规的效力。

五、已登记境外特殊目的公司发生境内居民个人股东、名称、经营期限等基本信息变更，或发生境内居民个人增资、减资、股权转让或置换、合并或分立等重要事项变更后，应及时到外汇局办理境外投资外汇变更登记手续。

境内居民境外投资外汇变更登记完成后，方可办理后续业务
（含利润、红利汇回）。

六、非上市特殊目的公司以本企业股权或期权等为目标，对其直接或间接控制的境内企业的董事、监事、高级管理人员及其他与公司具有雇佣或劳动关系的员工进行权益激励的，相关境内居民个人在行权前可提交以下材料到外汇局申请办理特殊目的公司外汇登记手续：

（一）书面申请与《境内居民个人境外投资外汇登记表》。

（二）已登记的特殊目的公司的境外投资外汇业务登记凭证。

（三）相关境内企业出具的个人与其雇佣或劳动关系证明材料。

（四）特殊目的公司或其实际控制人出具的能够证明所涉权益激励真实性的证明材料。

（五）在前述材料不能充分说明交易的真实性或申请材料之间的一致性时，要求提供的补充材料。

境内居民个人参与境外上市公司股权激励计划按相关外汇管理规定办理。

七、特殊目的公司完成境外融资后，融资资金如调回境内使用的，应遵守中国外商投资和外债管理等相关规定。返程投资设立的外商投资企业应按照现行外商直接投资外汇管理规定办理相关外汇登记手续，并应如实披露股东的实际控制人等有关信息。

八、境内居民从特殊目的公司获得的利润、红利调回境内的，应按照经常项目外汇管理规定办理；资本变动外汇收入调回境内的，应按照资本项目外汇管理规定办理。

九、因转股、破产、解散、清算、经营期满、身份变更等原因造成境内居民不再持有已登记的特殊目的公司权益的，或者不再属于需要办理特殊目的公司登记的，应提交相关真实性证明材料及时到外汇局办理变更或注销登记手续。

十、境内居民直接或间接控制的境内企业，可在真实、合理需求的基础上按现行规定向其已登记的特殊目的公司放款。

十一、境内居民可在真实、合理需求的基础上购汇汇出资金用于特殊目的公司设立、股份回购或退市等。

十二、本通知实施前，境内居民以境内外合法资产或权益已向特殊目的公司出资但未按规定办理境外投资外汇登记的，境内居民应向外汇局出具说明函说明理由。外汇局根据合法性、合理性等原则办理补登记，对涉嫌违反外汇管理规定的，依法进行行政处罚。

十三、境内居民与境外特殊目的公司之间的跨境收支，应按现行规定办理国际收支统计申报。

十四、外汇局定期分析境内居民通过特殊目的公司境外投融资及返程投资整体情况，密切关注其对国际收支的影响，并加强对境内居民通过特殊目的公司境外投融资及返程投资的事中、事后监管。

十五、境内居民或其直接、间接控制的境内企业通过虚假或构造交易导出资金用于特殊目的公司，外汇局根据《中华人民共和国外汇管理条例》第三十九条进行处罚。

境内居民未按规定办理相关外汇登记、未如实披露返程投资企业实际控制人信息、存在虚假承诺等行为，外汇局根据
《中华人民共和国外汇管理条例》第四十八条第（五）项进行处罚。

在境内居民未按规定办理相关外汇登记、未如实披露返程投资企业实际控制人信息或虚假承诺的情况下，若发生资金流出，外汇局根据《中华人民共和国外汇管理条例》第三十九条进行处罚；若发生资金流入或结汇，根据《中华人民共和国外汇管理条例》第四十一条进行处罚。

境内居民与特殊目的公司相关跨境收支未按规定办理国际收支统计申报的，外汇局根据《中华人民共和国外汇管理条例》第四十八条第（一）项进行处罚。

十六、本通知自发布之日起实施。《国家外汇管理局关于境内居民通过境外特殊目的公司融资及返程投资外汇管理有关问题的通知》（汇发[2005]75号）同时废止。之前相关规定与本通知内容不一致的，以本通知为准。

国家外汇管理局各分局、外汇管理部接到本通知后，应及时转发辖内中心支局、支局、城市商业银行、农村商业银行、外资银行、农村合作银行；各中资银行接到通知后，应及时转发所辖各分支机构。执行中如遇问题，请及时向国家外汇管理局资本项目管理司反馈。

附件：

1. 返程投资外汇管理所涉业务操作指引 (略)

2. 资本项目直接投资外汇业务申请表 (略)

Hui Fa [2014] No.37

Branches and offices of the State Administration of Foreign Exchange of the provinces, autonomous regions and municipalities directly under the central government, and the Shenzhen, Dalian, Qingdao, Xiamen and Ningbo branches; and Chinese-invested designated foreign exchange banks:

With a view to leveraging the decisive function of the market in the allocation of resources, supporting implementation of the state's strategy of “going global”, fully utilising the dual foreign and domestic resources and markets, further simplifying and facilitating the cross-border capital transactions involved in the investment/financing activities engaged in by residents in China through special purpose vehicles, duly serving the development of the real economy and increasing the degree of convertibility in cross-border capital and financial transactions in an orderly fashion, we, pursuant to regulations such as the PRC Regulations for the Control of Foreign Exchange, hereby notify you as follows on issues relevant to exchange control in connection with offshore investment/financing and round-trip investment by residents in china through special purpose vehicles:

1. For the purposes of this Circular, the term “special purpose vehicle” (SPV) means an offshore enterprise directly established or indirectly controlled abroad by a resident in China (including both organisations in China and individual residents in China) using the assets of, or equity in, an enterprise in China lawfully held by it/him/her, or offshore assets or equity lawfully held by it/him/her, for investment or financing purposes.

For the purposes of this Circular, the term “round-trip investment” means the act whereby a resident in China carries out direct investment activities in China directly or indirectly through an SPV, namely establishing a foreign-invested enterprise or project (an FIE) in China through new establishment or acquisition or other such method, and whereby it/him/her secures rights and interests therein such as ownership or control or the right to operate and manage the same.

For the purposes of this Circular, the term “organisation in China” means an enterprise or public institution with legal personality or other economic organisation lawfully established in China. The term “individual resident in China” means a Chinese citizen holding a Chinese resident ID card, military ID document or armed police ID document, or a foreign individual who, although he/she does not have a lawful Chinese ID document, is normally resident in China for reasons of economic interest.

For the purposes of this Circular, the term “control” means that a resident in China has secured the right to operate, to benefit from, and to make the decisions for, an SPV through means such as acquisition, trust, holding on behalf of another, voting rights, repurchase and convertible bonds.

2. The State Administration of Foreign Exchange and its (sub-)branches (SAFE) exercise administration over the SPVs established by residents in China through registration. The registration of SPVs established by individuals resident in China and related exchange control shall be handled in accordance herewith. The registration of SPVs established by organisations in China and related exchange control shall be handled in accordance with current provisions and this Circular.

3. Before a resident in China makes a capital contribution to an SPV using lawful domestic or offshore assets or equity, it/he/she shall apply to carry out offshore investment related foreign exchange registration procedures with SAFE. If the resident in China is to make its/his/her capital contribution in the form of lawful domestic assets or equity, it/he/she shall apply to carry out registration with SAFE of the place where its/his/her enterprise is registered or SAFE of the place where the assets or equity of the enterprise in China is located. If the resident in China is to make its/his/her capital contribution in the form of lawful offshore assets or equity, it/he/she shall apply to carry out registration with SAFE of the place where it is registered or SAFE of the place where he/she has his/her registered permanent residency.

An individual resident in China shall submit the following documents evidencing genuineness when carrying out offshore investment related foreign exchange registration procedures:

(1) a written application and a Form for Offshore Investment Related Foreign Exchange Registration for an individual resident in China;

(2) his/her ID document;

(3) the SPV's registration document and a document evidencing the shareholders or de facto controller(s) (for example, register of shareholders and register of subscribers);

(4) the resolution of the highest authority of the domestic/offshore enterprise consenting to the offshore investment/financing (if the enterprise has not been established, a written account of the equity owners' consent to the offshore investment/financing shall be provided);

(5) the document evidencing that the individual resident in China directly or indirectly holds assets or equity of the enterprise in China that is to be used for the offshore investment/financing, or lawfully holds the offshore assets or equity; and

(6) where the aforementioned documentation cannot fully demonstrate the genuineness of the transaction or the consistency of the application materials, the supplementary materials the provision of which is requested.

An organisation in China shall carry out offshore investment related foreign exchange registration procedures in accordance with relevant provisions such as the State Administration of Foreign Exchange, Circular on the Issuance of the (Hui Fa [2009] No.30).

A resident in China may proceed with subsequent matters only after carrying out offshore investment related foreign exchange registration.

4. A resident in China and the SPV established thereby may not jeopardise the sovereignty, security or public interest of China, may not violate the laws and regulations of China, may not harm the relationship between China and the relevant country (region), may not violate the international treaties to which China has acceded and may not be involved in technologies or products the export of which is prohibited by China.

The registration of an offshore SPV shall not have the effect of evidencing that its investment/financing acts are in compliance with the laws and regulations of the competent industry department.

5. Where a change in the basic particulars of a registered offshore SPV, such as a shareholder that is an individual resident in China, its name, its term of operations, occurs, or a change in a material matter, such as a capital increase or reduction, equity transfer or exchange by the individual resident in China, merger or division, occurs, procedures for amendment of the offshore investment related foreign exchange registration shall be carried out with SAFE.

A resident in China may proceed with subsequent matters (including profit or dividend repatriation) only after completing amendment of offshore investment related foreign exchange registration.

6. If an unlisted SPV uses its equity or options, etc. as an equity incentive for the directors, supervisors and senior management personnel of, and other workers with a service or employment relationship with, the enterprise in China directly or indirectly controlled by it, the relevant individual resident in China may submit the materials set forth below to SAFE to carry out foreign exchange registration procedures for the SPV before exercising his/her rights:

(1) a written application and a Form for Offshore Investment Related Foreign Exchange Registration for an individual resident in China;

(2) proof of the registered SPV's offshore investment related foreign exchange registration;

(3) documentation issued by the relevant enterprise in China evidencing the service or employment relationship between it and the individual;

(4) documentation issued by the SPV or its de facto controller evidencing the genuineness of the equity incentive in question; and

(5) where the aforementioned documentation cannot fully demonstrate the genuineness of the transaction or the consistency of the application materials, the supplementary materials the provision of which is requested.

Where an individual resident in China is enrolled in the equity incentive plan of an offshore listed company, matters shall be handled in accordance with relevant exchange control provisions.

7. If, after completion of offshore financing, an SPV is to repatriate the financing proceeds for use in China, it shall comply with the provisions of China on administration of foreign investment, foreign debt, etc. An FIE established through round-trip investment shall carry out relevant foreign exchange registration procedures in accordance with current provisions on exchange control in respect of foreign direct investment, and shall truthfully disclose relevant information such as the de facto controller(s) of the shareholders.

8. Where a resident in China repatriates the profit or dividends derived from an SPV, matters shall be handled in accordance with provisions for exchange control on the current account. Where foreign exchange income derived from changes in capital is repatriated, matters shall be handled in accordance with provisions for exchange control on the capital account.

9. If a resident in China ceases to hold equity in an SPV or no longer falls in the category of requiring to carry out registration of an SPV due to a share transfer, bankruptcy, dissolution, liquidation, expiration of the term of operation, change in status or other such reason, it/he/she shall submit the relevant documentation evidencing the genuineness thereof and carry out, in a timely manner, the procedures for registration of the change or deregistration with SAFE.

10. An enterprise in China directly or indirectly controlled by a resident in China may extend a loan to the resident's registered SPV in accordance with current provisions and on the basis of genuine and reasonable need.

11. A resident in China may, on the basis of genuine and reasonable need, purchase foreign exchange and remit the proceeds abroad to be used for the establishment of an SPV, a share buyback or delisting, etc.

12. If, before the implementation hereof, a resident in China has made a capital contribution to an SPV using lawful domestic or offshore assets or equity but has not carried out offshore investment related foreign exchange registration in accordance with provisions, it/he/she shall provide a letter of explanation to SAFE explaining the reason therefor. SAFE shall carry out registration in accordance with the principles of lawfulness, reasonableness, etc., and if a violation of exchange control provisions is suspected, impose administrative penalties in accordance with the law.

13. International receipt and payment statistical reporting shall be carried out in accordance with current provisions for cross-border receipts and payments between a resident in China and its/his/her SPV.

14. SAFE shall regularly analyse the overall situation of offshore investment/financing and round-trip investment by residents in China through SPVs, pay close attention to its effect on the international balance of payments, and strengthen during-the-event and after-the-event oversight over offshore investment/ financing and round-trip investment by residents in China through SPVs.

15. If a resident in China or his directly or indirectly controlled enterprise in China remits funds outwards to be used by an SPV based on a fraudulent or fabricated transaction, SAFE shall impose penalties pursuant to Article 39 of the PRC Regulations for the Control of Foreign Exchange.

If a resident in China fails to carry out the relevant foreign exchange registration in accordance with provisions, fails to disclose information on the de facto controller(s) of a round-trip investment enterprise or gives a fraudulent undertaking, etc., SAFE shall impose penalties pursuant to Item (5) of Article 48 of the PRC Regulations for the Control of Foreign Exchange.

Where a resident in China fails to carry out the relevant foreign exchange registration in accordance with provisions, fails to disclose information on the de facto controller of the round-trip investment enterprise or gives a fraudulent undertaking, etc. and an outflow of funds occurs, SAFE shall impose penalties pursuant to Article 39 of the PRC Regulations for the Control of Foreign Exchange; or an inflow of funds or foreign exchange settlement occurs, SAFE shall impose penalties pursuant to Article 41 of the PRC Regulations for the Control of Foreign Exchange.

If international receipt and payment statistical reporting is not carried out for relevant cross-border receipts and payments between a resident in China and its/his/her SPV in accordance with provisions, SAFE shall impose penalties pursuant to Item (1) of Article 48 of the PRC Regulations for the Control of Foreign Exchange.

16. This Circular shall be effective as of the date of issuance. The Circular on Issues Relevant to Foreign Exchange Control with Respect to the Round-trip Investment of Funds Raised by Domestic Residents Through Offshore Special Purpose Companies (Hui Fa [2005] No.75) shall be repealed simultaneously. In the event of an inconsistency between this Circular and previous relevant provisions, this Circular shall prevail.

Upon receipt of this Circular, the branches and offices of the State Administration of Foreign Exchange shall promptly forward the same to the central sub-branches, sub-branches, urban commercial banks, rural commercial banks, foreign-funded banks and rural cooperative banks in their jurisdictions. Upon receipt of this Circular, wholly Chinese-owned banks shall forward the same to their (sub-)branches. If an issue is encountered in the course of implementation hereof, you are asked to promptly report the same to the Capital Account Management Department of the State Administration of Foreign Exchange.

Annexes:

1. Operational Guidelines for Matters Relating to Exchange Control in Connection with Round-trip Investment (omitted)

2. Application Form for Foreign Exchange Matters Relating to Direct Investment on the Capital Account (omitted)

clp reference:3800/14.07.04 prc reference:汇发 [2014] 37号 issued:2014-07-04 effective:2014-07-04