15 May 2019
China Streamlines Foreign Exchange Arrangements for Multinational Businesses
The registration requirements of foreign debt and outbound lending by multinational companies are to be streamlined in line with a recent directive from the State Administration for Foreign Exchange (SAFE). The change comes as part of an amendment to the Administrative Provisions for the Centralised Operation of the Cross-Border Funds of Multinational Companies (Hui Fa No. 36 ).
Under the terms of the new arrangements, once a multinational company’s mainland-registered subsidiary (“the managing company”) has secured the requisite record-filing notification from the relevant SAEF office, the managing company only needs to complete one registration with regard to its consolidated foreign debt (or outbound lending) quota and is no longer required to register each individual transaction according to currency or creditor / debtor. In addition, the amendments also allow for the facilitation of the settlement and payment of foreign exchange incomes via the managing company’s accounts, as well as the adjustment and optimisation of a number of account functions.
These amendments came into force as 15 March this year.
For further details (in Chinese), please access the following link: