Administration of foreign affairs of provinces, autonomous regions, municipalities and separately listed cities：

In order to further deepen the foreign exchange management system reform, to better meet the business and facilitate foreign investment and working capital needs, the State Administration of Foreign Exchange decided to summarize the experience in the early part of the pilot areas, based on the nationwide implementation of the foreign investment enterprise foreign exchange capital foreign exchange management reform. To ensure the smooth implementation of this reform, we hereby notify the relevant issues as follows:

Ⅰ. To implement the wishes of foreign exchange capital settlement of foreign-invested enterprises

Foreign-invested enterprises in the capital account by the foreign exchange bureau of foreign exchange monetary contribution recognized equity capital available for settlement in the bank according to the actual needs of enterprises.

Ⅱ. Foreign-invested enterprises obtained from the settlement of foreign exchange capital wishes to be paid RMB funds into the settlement account management

Foreign-invested enterprises in the bank should open one correspondence principle capital - account settlement to be paid (hereinafter referred to as the settlement to be paid account), used to store the wishes of RMB obtained from the settlement funds, and through the payment procedures for all types of accounts.

Ⅲ. Foreign-invested enterprises should follow the use of capital within the true scope of business, own principles

Capital and foreign-invested enterprises RMB obtained from the settlement funds can not be used for the following purposes:

1. Not be used directly or indirectly outside the business scope or state laws and regulations prohibit spending.

2. Except as otherwise provided in laws and regulations, shall not directly or indirectly for investment securities.

3. Directly or indirectly, for the payment of RMB entrust loans (except for permitted business scope), repayment of inter-enterprise lending (including third party advances) has been lending to third parties and the repayment of bank loans of RMB.

4. In addition to foreign-invested real estate enterprises can not be used to pay costs associated with the purchase of non-owner-occupied property.

Ⅳ. Foreign-invested enterprises to facilitate settlement of funds to carry out domestic equity investment

In addition to the original currency transfer of equity investment funds, allowing investment as the main business of foreign-invested enterprises (including foreign-invested companies, foreign-invested venture investment enterprises and foreign-invested equity investment enterprises), the project's investments in its territory, compliance under the premise of the actual investment will directly exchange capital settlement or settlement will be paid in the account of RMB fund to be invested enterprises account.

Ⅴ. Pay further standardize the management of foreign exchange funds

1. Foreign investors, foreign-invested enterprises and other relevant provisions shall apply subject truthfully provide relevant materials to prove the authenticity of the bank.

2. Banks should fulfill "Know Your Customer", "understand the business," "due diligence" and other principles of the exhibition industry, the authenticity of the audit assume responsibility when foreign investment enterprises for external payments and capital RMB obtained from the settlement payment.

Ⅵ. Other direct investment capital settlement and the use of foreign exchange account management

Domestic institutions to open accounts in the territory of the realization of assets and internally within an investment account referring to enterprises with foreign investment capital settlement capital account management.

Domestic individuals opened accounts within the realization of assets and reinvestment accounts, as well as domestic institutions and individuals to open foreign accounts rely on the realization of assets related to business registration certificate directly in the bank for settlement.

Foreign investors account funds upfront fees paid by foreign exchange settlement the principle of reciprocity.

Ⅶ. Further strengthen the foreign exchange bureau to investigate irregularities and ex post regulation

Foreign exchange bureau in accordance with the relevant provisions should be strengthened, People's Republic of China Foreign Exchange Management Regulations, Foreign Direct Investment Investors in foreign exchange regulations and other enterprises with foreign investment banks capital settlement and use of business compliance and verification guidance.

Ⅷ. Other matters

This notice shall enter into force from 01-06-2015.