Legislation roundup: Interbank FX trading, housing loans and Guangdong Free Trade Zone
February 04, 2016 | BY
Katherine Jo &clp articles &Qualified foreign banks have been invited to participate in currency trading, downpayments for personal housing loans have been lowered and MNCs' FX controls have been eased in the Guangdong FTZ
Foreign Exchange
China Foreign Exchange Trade System, Announcement on Matters Relevant to the Entry into the Interbank Foreign Exchange Market by Foreign Banks That Participate in Renminbi Sale and Purchase Business
Foreign participant banks whose renminbi sale and purchase business is of a relatively large scale, that are internationally influential and that are geographically representative may, based on their business requirements, apply to the Trade System to become members of the interbank foreign exchange market and participate in spot, forward, swap, currency swap and option trading through the Trade System's trading system.
See the digest for more details.
Further reading
Real Estate
People's Bank of China and China Banking Regulatory Commission, Circular on Issues Relevant to Revising the Policy on Personal Housing Loans
In cities that have not implemented housing purchase restriction measures, the minimum down payment percentage for commercial personal housing loans to resident households purchasing their first ordinary residential unit is, in principle, 25%.
See the digest for more details.
Further reading
Free Trade Zones
Guangdong Province, Implementing Rules for Promoting the Pilot Project for Exchange Control Reform in the Sectors of the China (Guangdong) Pilot Free Trade Zone: Nansha New Area of Guangzhou and Hengqin New Area of Zhuhai
The foreign debt proceeds of enterprises (excluding financial institutions) in the two New Areas may be converted at will. The threshold for centralized operation and management of foreign exchange funds by multinational corporations is lowered to US$50 million from US$100 million.
Further reading
Foreign Exchange
China Foreign Exchange Trade System, Announcement on Matters Relevant to the Entry into the Interbank Foreign Exchange Market by Foreign Banks That Participate in Renminbi Sale and Purchase Business
Foreign participant banks whose renminbi sale and purchase business is of a relatively large scale, that are internationally influential and that are geographically representative may, based on their business requirements, apply to the Trade System to become members of the interbank foreign exchange market and participate in spot, forward, swap, currency swap and option trading through the Trade System's trading system.
See the digest for more details.
Further reading
Real Estate
People's Bank of China and China Banking Regulatory Commission, Circular on Issues Relevant to Revising the Policy on Personal Housing Loans
In cities that have not implemented housing purchase restriction measures, the minimum down payment percentage for commercial personal housing loans to resident households purchasing their first ordinary residential unit is, in principle, 25%.
See the digest for more details.
Further reading
Free Trade Zones
Guangdong Province, Implementing Rules for Promoting the Pilot Project for Exchange Control Reform in the Sectors of the China (Guangdong) Pilot Free Trade Zone: Nansha New Area of Guangzhou and Hengqin New Area of Zhuhai
The foreign debt proceeds of enterprises (excluding financial institutions) in the two New Areas may be converted at will. The threshold for centralized operation and management of foreign exchange funds by multinational corporations is lowered to US$50 million from US$100 million.
Further reading
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