Notice on soliciting opinions on matters related to deepening reforms of cross-border investment and financing foreign exchange management by the State Administration of Foreign Exchange.

The State Administration of Foreign Exchange has drafted the "Notice of the State Administration of Foreign Exchange on Matters Related to Deepening Foreign Exchange Management Reform for Cross-border Investment and Financing, and is now soliciting opinions from the public. The "Notice" includes 9 specific policies in three aspects: 4 investment-related policies. The first is to cancel the basic information registration of pre-investment expenses for domestic direct investment. The second is to cancel the registration of reinvestment by foreign-invested enterprises in China, and promote the policy of exempting registration for reinvestment by foreign-invested enterprises in pilot provinces and cities nationwide. The third is to allow reinvestment of foreign exchange profits from foreign direct investments. The fourth is to facilitate non-enterprise research institutions in China to receive foreign funds, and promote the pilot policy of non-enterprise research institutions in China receiving foreign funds in pilot regions nationwide. 2 financing-related policies. The first is to expand the facilitation of cross-border financing. The quota for facilitating foreign debt for high-tech industries, "specialized, sophisticated, and new" industries, and technology-based small and medium-sized enterprises is uniformly increased to not more than $10 million in equivalent value. The quota for facilitating foreign debt for enterprises selected by relevant departments based on the "innovation credit system" is increased to not more than $20 million in equivalent value. The second is to simplify the registration and management of businesses facilitating cross-border financing, allowing companies participating in the facilitation of cross-border financing to be exempt from providing audited financial reports for the previous year or the most recent period at the contracting and registration stage. 3 payment facilitation policies. The first is to reduce the negative list for the use of capital project income, canceling the restriction on using foreign exchange income from capital projects and their exchange proceeds in RMB funds for purchasing non-use residential properties. The second is to optimize the facilitation of payment for foreign exchange income from capital projects. Banks are allowed to determine the proportion and frequency of spot checks for facilitating businesses based on customer compliance, operating conditions, risk levels, and other factors under the premise of balancing facilitation services and risk prevention. The third is to facilitate the payment for purchasing houses by overseas individuals in China. The policy of facilitating the payment for purchasing houses in the Guangdong-Hong Kong-Macao Greater Bay Area for Hong Kong and Macao residents is to be extended nationwide, allowing overseas individuals to make payments for foreign exchange funds related to purchasing houses in advance with the purchase contract or agreement before obtaining the purchase registration certificate issued by the real estate regulatory authority, and then provide the purchase registration certificate to the bank afterwards.