By King & Wood Mallesons’ Banking & Finance Group

On 19 May 2014, the State Administration of Foreign Exchange (the “SAFE”) promulgated the Provisions on the Administration of Foreign Exchange for Cross-Border Security (Hui Fa [2014] No.29, the “New Provisions”). The New Provisions will, after it comes into force on 1st June 2014, replace twelve existing regulations that provide for cross-border security (collectively, the “Existing Provisions”) such as the Implementation Measures on the Administration of External Security Provided by Onshore Entities and the SAFE Circular on Issues Concerning the Administration of External Security Provided by Onshore Entities (also known as Circular 39).
Continue Reading The State Administration of Foreign Exchange Promulgated the Provisions on the Administration of Foreign Exchange for Cross-Border Security

By King & Wood Mallesons Banking Group

On 13 February 2014, the State Administration of Foreign Exchange ( “SAFE”) published the Provisions on the Administration of Foreign Exchange for Cross-border Security (Draft for Comments) (“New Provisions”) on its website, soliciting public opinions. The New Provisions, if implemented, will further loosen the country’s foreign exchange capital control.

Compared to the existing regulations (“Existing Rules”) such as the Implementation Measures on the Administration of External Security Provided by Onshore Entities and the Circular of SAFE on Issues Concerning the Administration of External Security Provided by Onshore Entities (“Circular 39”), the main changes are:
Continue Reading The State Administration of Foreign Exchange Soliciting Public Opinion on the Provisions on the Administration of Foreign Exchange for Cross-border Security

By Jack Wang, Chen Yun  King & Wood Mallesons’ Banking Regulation & Compliance Group

In the midst of its rapid economic development, the People’s Republic of China (PRC), the second largest economy and the largest trading nation in the world, has finally determined to change its domestic currency market, which used to be pretty much closed to foreign investors over a long period of time and accordingly, promulgated a series of laws and regulations to ease the previously tight foreign exchange (FX) control in the mainland. These laws and regulations were put in place to propel the internationalisation of Chinese Renminbi (RMB) by expanding the use of RMB under both current and capital accounts for the purpose of ultimately achieving an international status for the RMB matching the economic status of the PRC in the global economy. This chapter endeavours to outline a legislative landscape of RMB internationalisation from the following main aspects:
Continue Reading The PRC Legislative Landscape for RMB Internationalisation

By King & Wood Mallesons’ Banking & Finance Group

On 28 April 2013, SAFE promulgated the Administrative Measures for the Registration of Foreign Debt and an appendix thereto, the Operational Guidelines for the Registration of Foreign Debt (“New Rules on Foreign Debt”). Under the New Rules on Foreign Debt, borrowers are administered as three different groups: government finance agencies, banks, and non-bank borrowers. The New Rules on Foreign Debt have abolished some of the foreign debt approval requirements, clarified previous uncertainties in the practice of foreign debt registration and administration, and consolidated previous regulations on foreign debt registration and administration. The New Rules on Foreign Debt will come into effect on 13 March 2013.
Continue Reading SAFE’s New Rules Simplify Registration of Foreign Debt

By Xiong Jin, Feng Caihong, Liu Qing and Wei Kao  King and Wood Mallesons’ Mergers & Acquisitions Group

On November 19, 2012, the State Administration of Foreign Exchange (“SAFE”) promulgated the Circular Regarding Further Improvement and Adjustment of Policies on Foreign Exchange Administration of Direct Investment (Hui Fa [2002] No. 59, the “Circular”) which aims to dramatically simplify foreign exchange administration procedures concerning inbound and outbound direct investment. The Circular is a response to a directive to reduce administrative approvals in the Decision of the State Council on the Sixth Abolishment and Adjustment of Administrative Examination and Approval Projects (Guo Fa [2012] No. 52) promulgated by the State Council on 23 September 2012, and it also reflects a trend of relaxing foreign exchange supervision given China’s accumulation of major foreign exchange reserves. The Circular will be become effective on December 17, 2012 and is expected to have a significant impact on foreign direct investment and outbound investment by domestic enterprises.
Continue Reading SAFE Issues New Rules to Further Relax the Foreign Exchange Controls over Direct Investment

By King & Wood Mallesons’ Finance Group

In May 2010, the State Council issued the Opinions on Encouraging and Guiding the Healthy Development of Private Investment (Guo Fa [2010] No.13) to promote private investment activities . In order to solve the difficulties faced by private companies in terms of overseas financing and the lack of liquidity, and to simplify the foreign exchange control policies for outbound investment activities by private companies, SAFE released new rules on private outbound investments, the Circular of State Administration of Foreign Exchange on Foreign Exchange Administration in Relation to Encouraging and Guiding the Healthy Development of Private Investment (Hui Fa [2012] No.33) (the “Circular”) on 11 June 2012. The Circular simplifies the regulation processes for the remittance of foreign direct investment capital as well as offshore loans[1]  granted by domestic enterprises and relaxes the administration of  external security provided by individuals.

The Circular’s main content includes:

Continue Reading Safe New Rules to Boost Private Outbound Investment

作者:金杜律师事务所融资

自2010年5月7日国务院发布《关于鼓励和引导民间投资健康发展的若干意见》(国发[2010]13号)以来,民间投资业务获得了进一步发展。为了解决企业在境外融资难及流动资金不足的问题,简化民间投资相关外汇管理政策,鼓励和引导民间资本境外投资的健康发展,国家外汇管理局于2012年6月11日颁布了《国家外汇管理局关于鼓励和引导民间投资健康发展有关外汇管理问题的通知》(汇发[2012]33号)(简称“通知”)。该通知简化了境外直接投资资金汇回及境外放款的监管程序,并适当地放宽了境内个人对外担保的管理。
   
《通知》的主要内容包括:

Continue Reading 外管局新规则助力民间境外投资进一步发展

By Zeng Xianwu King & Wood’s Foreign Direct Investment (FDI) Group

Since the reform and opening-up policy was introduced in 1978, especially in the past ten (10) years, the People’s Republic of China (the "PRC" or "China") has undergone significant changes.  China is a growth engine for the worldwide economy, fueling global expansion via higher output and trading relationships with other nations as well as greater contributions from domestic consumption.  Over last nine (9) months of 2011, China has already attracted contractual inbound foreign direct investment of USD177.8 billion.  Notwithstanding China’s status as one of the world’s largest economies, and the massive amounts of foreign money invested in China, the basic laws and rules in China governing foreign investment seems mysterious for those who want to invest in China or are accustomed to laws of their countries.

Continue Reading Overview of Doing Business in China