Central Bank Standardize RMB FDI Settlement Business

Foreign direct investment issued recently by the people's Bank of China

On the basis of maintaining the linkage with the relevant management system of foreign direct investment, the "management measures" further implements the market supervision idea and effectively promotes investment facilitation.

According to the "management measures", foreign enterprises and economic organizations or individuals who invest in Renminbi to invest in China comply with the relevant laws and regulations of foreign direct investment in People's Republic of China, can directly apply to the bank for RMB settlement business, and the bank can directly handle Renminbi fund settlement business for foreign-funded enterprises in accordance with relevant regulations, and the relevant financial services formalities are more

Overseas enterprises and economic organizations or individuals may apply directly to the bank for RMB settlement business, including capital contributions for newly established enterprises, merger and acquisition of domestic enterprises, equity pfer, and capital increase and provision for existing enterprises.

According to the "management measures", the people's Bank of China and relevant departments will establish a mechanism for information sharing and management, strengthen supervision afterwards, promote the extended inspection of capital use, and strengthen the risk prevention responsibility of banks.

The central bank will actively and steadily carry out the RMB settlement business of foreign direct investment, will further expand the cross border use of RMB, support the development of the RMB market in Hongkong, and effectively promote trade and investment facilitation.