This year, to further deepen reform on the foreign exchange management system and meet the needs of business and facilitate foreign investment and working capital, the State Administration of Foreign Exchange have launched two reform policies, Notice on further streamline and improve direct investment foreign exchange management policy and Notice on the reform inform the foreign investment and foreign exchange settlement of capital management approach, all with effect from June 1, 2015 implementation. The two policies shall be implemented from June 1, 2015.

Direct investment foreign exchange management reform convenience is mainly reflected in the following aspects: First, canceling the registration approval of foreign exchange under domestic and overseas direct investment. Second, to simplify the registration of investment from foreign investors under domestic direct investment foreign investors. Third, to cancel record of reinvested overseas foreign exchange. Fourth, to replace direct investment foreign exchange inspection with stock equity registration.

The main contents of the settlement of capital management reform include: First, foreign-invested enterprises to implement the wishes of the settlement of foreign exchange capital management, enterprise free to choose the timing of capital settlement, tentatively scheduled for the wishes of foreign exchange ratio of 100%, according to the foreign exchange bureau can be balance of payments situation Adjustment. Second, a clear foreign-invested enterprises to use capital and settlement of funds should be within the operating range in line with the real, own principles. Third, in order to facilitate foreign investment enterprises RMB obtained from the settlement funds to carry out domestic equity investments, in order to distinguish investment as the main business of foreign-invested enterprises and foreign-invested enterprises are general management. Fourth, to further standardize the management of the payment of settlement funds, banks to take a clear audit obligations in accordance with the provisions of authenticity. Fifth, clarify and simplify other direct investment capital settlement and the use of foreign exchange account management. Sixth, strengthen the foreign exchange bureau in the matter afterwards managed to further strengthen the regulatory and compliance investigation afterwards.