State Administration of Foreign Exchange: Reduce the negative list for the use of capital project income.

The State Administration of Foreign Exchange issued a notice on matters related to deepening the reform of cross-border investment and financing foreign exchange management. The notice proposes to shorten the negative list for the use of capital project income. Non-financial enterprises should follow the principles of authenticity and self-use for the use of capital funds, foreign exchange income under foreign debt, and RMB funds obtained from exchange. Funds should not be used directly or indirectly for spending prohibited by national laws and regulations; without clear regulations, funds should not be used directly or indirectly for securities investment or other investment and financing; and funds should not be used to provide loans to non-related enterprises.