Wenzhou Cross Border Direct Investment Pilot Approved &Nbsp; 800 Billion Free Capital

For the increasingly large private capital, the local government of Wenzhou has opened up a breach in the word "sparse". Under a series of measures to guide investment, there has been another channel to allow private capital to exit directly.

In January 7th, the Wenzhou foreign trade and Economic Cooperation Bureau issued document No. 2011 [1] to the foreign trade and economic cooperation system in the region, the Investment Promotion Bureau of the local development zone, the branches of the State Administration of foreign exchange (Wenzhou foreign exchange branch) and other systems.

The pilot scheme for individual overseas direct investment in Wenzhou stipulates that from the date of dispatch, Wenzhou residents may not have to carry out the same curve as before, and funds may exit directly.

It is said that

Private capital going to sea

According to the pilot scheme, individual investors in Wenzhou need to hold Chinese identity cards and obtain Wenzhou residents who are over 18 years old because of their private passports.

"Allowing individuals to invest directly abroad is conducive to broadening the channels for private capital investment in Wenzhou and guiding the rational and legitimate" going out "of public funds.

Wenzhou Finance Office official revealed.

There are two guiding intentions for private capital to invest abroad through formal channels.

On the one hand, the decision-making departments can grasp the flow and quantity of funds, which is conducive to safeguarding the legitimate rights and interests of individuals in Wenzhou.

On the other hand, Wenzhou's pilot pilot of individual direct foreign investment will accumulate experience for the state to promote the reform of the foreign exchange management system.

The pilot scheme stipulates that the amount of overseas investment by investors should not exceed $3 million, and the total amount of overseas direct investment implemented by multiple investors will not exceed $10 million.

There are many ways to invest.

Investors can set up enterprises through overseas establishment, merger and acquisition and share holding, or acquire ownership, control and management rights of existing enterprises.

However, the plan stipulates that the field of personal capital investment must be non-financial enterprises.

"This is a big gap with the capital that Wenzhou wants to go out now."

One person in Wenzhou believes that "the most interesting area of Wenzhou capital is finance, except real estate."

This recent survey by the Wenzhou central sub branch of the people's Bank of China can be corroborated.

As of May 2010, 11 legal entities in Wenzhou, 1360 legal person enterprises, had more than 3 billion 900 million yuan of funds already invested in local financial institutions.

This does not include the increase in capital and stock expansion of financial institutions after May, or the investment of local legal persons in the financial institutions outside the region and outside the region.

Therefore, some investors believe that whether this kind of prohibition is compatible with the demand for private capital in the region is to form a "harmonious" docking.

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Surge in overseas remittance

The implementation of the Wenzhou regional pilot is the demand for overseas remittances for the export and accumulation of local private capital over the years.

A more unified view is that Wenzhou.

"Since January this year, overseas remittances are basically on the rise."

Taking the accumulation of foreign exchange as an example, a person in charge of a bank of China in Zhejiang province told reporters.

The growth of foreign currency deposits in the Wenzhou region reached nearly $400 million in the first two quarters of last year.

Wenzhou is a key overseas Chinese in the whole province and even in the whole country. According to the statistics of Wenzhou overseas Chinese Federation, there are about 500000 overseas Chinese, Hong Kong and Macao compatriots in 131 countries and regions in the world, and more than 430 thousand returned overseas Chinese and overseas Chinese families in Wenzhou.

In fact, the accumulation of such overseas remittance and private capital is not a temporary impulse.

During the surge of overseas remittances in 2009, some overseas Chinese associations moved funds to speculation in major cities in the country.

However, at present, the trend of the property market is unknown, and this huge amount of funds will enter the "sleep" state.

What worries local regulators is that these huge sums of money are likely to enter underground banks and usurious companies.

Due to the lack of investment channels, the foreign exchange trading volume has been in the two cities in Beijing and Shanghai in the past few years in Wenzhou.

"Compared with those cities that mostly use institutions or enterprises to buy foreign exchange, Wenzhou mainly focuses on personal speculation."

Introduction to foreign exchange trader of Wenzhou bank.

After the surge of overseas Chinese remittance, funds are restless, but there are few sources of public funds. They can only intervene in speculation in real estate, coal mines and agricultural products.

Although the overall profit is obvious, it has also undertaken a "speculation".

The direct exit of personal funds is actually one of the series of financial construction policies launched by the local government of Wenzhou.

And the pilot of private capital free exit is to dredge the private capital in a wider range.

Wenzhou City Foreign Trade and Economic Cooperation Bureau personage personage discloses, when this idea is put forward, it is included in the important work of Wenzhou municipal government, and the related work responsibility is implemented.

This is still a pilot project.

It is divided into three stages, and is implemented in 2011.

Wenzhou City Foreign Trade and Economic Cooperation Bureau related personage introduction, since 2010 -2012, the pilot work is divided into three stages.

In the first stage (2010), in order to complete the stage of declaration, we should strive for the approval scheme of the relevant ministries and commissions of the state.

2011 is the second stage, which is the implementation phase of the plan.

In the third stage, in 2012, in order to sum up the evaluation stage, we should sum up the experience and results of the pilot evaluation and whether it will be further promoted.

The pilot is led by the local foreign trade and economic cooperation system and the financial office, while personal investment funds are backed up by the foreign trade and Economic Cooperation Bureau and the foreign exchange administration. The Wenzhou branch implements the regulatory function of capital in and out.

However, on the afternoon of January 10th, Cai Lingyue, the head of the Wenzhou branch of the safe, told the reporter that "it is not clear."