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China SAFE pilots reform of measures on foreign firms' forex capital settlement

2014-08-06 GMT+8:00

BEIJING, Aug. 4 (Xinhua) – The State Administration of Foreign Exchange (SAFE), China's top forex regulator, said on Monday in a circular that it will try out reform of the administrative measures on foreign-invested companies' forex capital settlements in some areas to better serve foreign companies.

According to the circular, foreign-invested companies registered in the piloting areas can implement willingness settlements for their forex capital.

The SAFE now temporarily set the proportion of willingness settlements for forex capital at 100 percent, and it will adjust the proportion according to change of the country's international payment situation.

When implementing willingness settlements for forex capital, foreign-invested companies can still choose current payment settlement method to use their forex capital.

Foreign-invested companies shall not use the RMB capital it obtain from forex capital settlement in securities investment, granting entrusted RMB loans, repaying lending between enterprises, repaying banking RMB loans that have been relent to a third party, or purchasing non-self-use property.

Areas covered by the pilot include Tianjin Binhai New Area, Shenyang Economic Zone, Suzhou Industrial Park, Donghu National Independent Innovation Demonstration Zone, Guanghzou Nansha New District, Hengqin New Area, Chengdu High-tech Industrial Development Zone, Zhongguancun National Independent Innovation Demonstration Zone, Chongqing Liangjiang New Area, Heilongjiang Yanbian Development and Opening-up Forex Administration Reform Piloting Area, Wenzhou Financial Comprehensive Reform Piloting Area, Pingtan Comprehensive Experimental Area, China-Malaysia Qinzhou Industrial Park, Guiyang Comprehensive Bonded Zone, Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Area, and Qinghai Wealth Management and Financial Comprehensive Reform Piloting Area.

The circular becomes effective on August 4.  (Edited by Hou Yujie,