People's Bank of China, Circular on Further Improving the Policies for Cross-border Renminbi Business to Facilitate Trade and Investment

中国人民银行关于进一步完善人民币跨境业务政策促进贸易投资便利化的通知

April 01, 2018 | BY

Susan Mok

Cross-border foreign exchange transactions may use renminbi.

Clp Reference: 3600/18.01.05 Promulgated: 2018-01-05

Issued: January 5 2018

Effective: as of date of issuance

Main contents: For any cross-border transaction where, in accordance with the law, foreign exchange may be used to effect settlement, an enterprise may use renminbi to effect settlement (Article 1).

Where a foreign investor proposes to establish multiple foreign-invested enterprises or projects in China, it may open a separate dedicated renminbi deposit account for the startup cost for each.

A foreign-invested enterprise may open a dedicated renminbi deposit account for contributing capital in a bank elsewhere, and may open multiple such dedicated renminbi deposit accounts. Funds may be transferred among dedicated renminbi deposit accounts for contributing capital opened in the same name (Article 4).

After a domestic enterprise that offers renminbi-denominated bonds abroad carries out relevant procedures in accordance with the provisions on macroprudential administration of the overall cross-border financing, it may, in light of its actual needs, repatriate the proceeds for use in China. The renminbi proceeds derived by a domestic enterprise from an offshore offering of shares may, in light of actual needs, be repatriated for use in China (Article 5).

Related legislation: Measures for the Administration of Renminbi Settlement Matters Relating to Foreign Direct Investment, Feb 13 2011 and Clarification on the Operational Rules for Renminbi Settlement Matters Relating to Foreign Direct Investment, 2012

clp reference:3600/18.01.05 issued:2018-01-05 effective:as of date of issuance

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