The People's Bank of China and the State Administration of Foreign Exchange issued a notice on the management of funds for domestic enterprises listing overseas.

Notice from the People's Bank of China and the State Administration of Foreign Exchange on Issues Related to the Management of Funds for Domestic Enterprises Listed Overseas. On December 26th, domestic enterprises listed overseas should, within 30 working days from the first trading day or completion of oversubscription overseas, submit the following materials to the local bank in their registration region (referred to as the local bank): (1) a written application and attached "Overseas Listing Registration Form"; (2) relevant filing materials regarding domestic enterprises listed overseas from the China Securities Regulatory Commission (excluding those not requiring prior filing as per the requirements of the CSRC); (3) announcement documents on overseas issuance or completion of oversubscription. After the bank verifies the materials, they will register the domestic enterprise on the National Foreign Exchange Management Bureau's digital platform (referred to as the system), print the overseas listing business registration certificate, affix the bank's business seal, and hand it over to the domestic enterprise. The notice also states that domestic enterprises repurchasing their overseas shares can use both overseas and domestic funds. If using domestic funds, a written application and related materials such as the "Overseas Listing Registration Form" and proof of the authenticity of the repurchase transaction should be submitted to the local National Foreign Exchange Administration sub-bureau 20 working days before the planned repurchase. After the sub-bureau verifies the materials, they will register the enterprise on the system, print a repurchase business registration certificate, affix the administrative licensing seal, and hand it over to the domestic enterprise. Funds sent from domestic to overseas for repurchase should not be diverted if there is a surplus or the repurchase is not completed and should be promptly returned to the domestic market. Furthermore, the notice highlights that funds related to the "full circulation" of H-shares should be transferred through the account of the China Securities Depository and Clearing Corporation Limited. It also mentions that the funds should be distributed in RMB form directly to domestic shareholders by the China Securities Depository and Clearing Corporation. The full text contains detailed instructions and procedures for the management of funds for domestic enterprises listed overseas, including the handling of various financial transactions and changes pertaining to overseas listings.