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- Index number:
- 000014453-2015-00027
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- Dispatch date:
- 2015-01-28
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- Publish organization:
- State Administration of Foreign Exchange
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- Exchange Reference number：
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- Name：
- SAFE Cancels Approval for Settlement of Foreign Exchange under Repatriated Funds Raised through Overseas Listing
To standardize and improve foreign exchange administration for the overseas listed domestic companies, and facilitate market operations, the State Administration of Foreign Exchange (SAFE) has recently released the Circular on Foreign Exchange Administration for Overseas Listings (Huifa No. 54 [2014], “Circular”), cancelling the approval for settlement of foreign exchange under repatriated funds raised overseas, in an effort to simplify registration and data submission.
The Circular stresses administration streamlining, power delegation and simplified management to further facilitate domestic companies in foreign exchange operation for overseas listing. It is highlighted as follows: First, cancel approval for settlement of foreign exchange under repatriated funds raised overseas under overseas-listed foreign-invested shares, and allow overseas listed companies to directly settle foreign exchange with banks. Second, integrate foreign exchange accounts. Domestic companies and their domestic shareholders can open their own foreign exchange accounts for centralized funds remittance and transfer if necessary. Third, allow the repatriation, unrestricted foreign exchange settlement and transfer of remaining funds after outward remittance through activities including repurchase by domestic companies and share increase by their domestic shareholders. Last but not least, abolish printed statements to simplify registration and data submission.
The circular shall come into force as of the date of release.
