CHINA: Rules for China Foreign Direct Investment to be Eased

Wednesday July 4 2012

It has been reported that the Chinese State Administration of Foreign Exchange is planning to simplify the foreign exchange rules pertaining to China foreign direct investment accounts.

The acts of opening or adding to foreign exchange accounts for the purpose of foreign direct investment will no longer be subject to regulatory examinations. The same will be true for transfers between different foreign exchange accounts.

Examinations will no longer be conducted on reinvestments of profits generated by foreign companies in China. And there will be a simplification of the procedures foreign investors must follow when buying Chinese equities in the over-the-counter market and applying for capital verification for investments in Sino-foreign joint ventures.

The move will eliminate a lot of procedures and make China foreign direct investment simpler in China.

This information will be updated as more details become available