Chinese companies will be allowed to borrow short-term foreign debt for the fastest year in Shanghai pilot

The fastest year in Shanghai pilot, "to the Chinese capital Project foreign exchange management to loosen the strength is really not small" despite the growing concern about the resurgence of hot money abroad, but this does not appear to affect the State administration of Foreign Exchange (hereinafter referred to as safe) "untie" capital projects in foreign currency management determination.　　The morning news reporter learned from people familiar with the matter yesterday that the Shanghai branch of the safe has convened more than 20 financial institutions in Shanghai on 27th to convene a symposium on foreign Exchange Management trends.　　According to the above meeting, the Shanghai branch of the foreign administration will launch a pilot project in Shanghai as soon as this year, extending the scope of access to foreign loans to most Chinese companies.　　At the same time, the Shanghai branch of the safe will also carry out three other pilot projects in Shanghai, including the expansion of foreign exchange pledged renminbi loan borrowers, and the pilot start-up period is also within the year.　　　　According to the above-mentioned people, these measures involve many aspects, objectively, "the strength of the foreign exchange management of capital projects of Chinese enterprises is really not small."　　Hot money inflow problem to be solved in the upcoming pilot projects, the most concerned nature is the expansion of enterprises to borrow short-term foreign debt access scope of the relevant content.　　The people familiar with the matter said that in the future, as long as the four requirements of Chinese enterprises can borrow short-term foreign debt: I have the right to operate import and export of foreign trade; second, three consecutive years of financial statements (newly established enterprises can not apply for processing);　　From the pilot operating process, the first by the Chinese enterprises to the financial institutions to submit the demand for short-term debt, and then the financial institutions to summarize all the requirements of the jurisdiction, on January 15, 2010 before the Shanghai branch of the foreign authority to submit applications, the Shanghai branch after the summary to the General Administration, approved by the General Administration.　　The Shanghai branch of the foreign exchange administration will not restrict the use of borrowings, foreign debt can be used for current account payments and wages. "The requirements are actually very loose. The above person evaluates.　　It is understood that the current foreign-funded enterprises in the total investment minus the amount of registered capital to borrow short-term external debt, a very small number of Chinese companies are often approved in the form of the foreign authority is allowed to borrow.　　A scholar who declined to be named said yesterday that if the news was true, the move by the agency was noteworthy, "after all, there is a lot of controversy over the recent influx of hot money." It is obvious that since many hot money has been entered in legal coats such as trade and borrowing, short-term foreign debt has always been recognized as having a close relationship with hot money inflows. Short-term foreign debt can be asked to borrow foreign banks, but also to foreign enterprises to borrow, and not limited to use.　　The problem with this is that expanding the scope will naturally be difficult to prevent hot money inflows.　　A number of pilot years "march" in addition to the above pilot, the recent safe Shanghai Branch will also launch three other foreign exchange-related pilot projects in Shanghai. First of all, the upcoming "expansion of foreign currency pledged renminbi loan borrower scope" policy, tentative timeOne year.　　According to the pilot content, in the future where the registered in Shanghai, Chinese-funded enterprises will be the same as the foreign-owned enterprise, with foreign exchange funds as collateral from the bank to borrow renminbi. "It is particularly worth mentioning that the current foreign exchange pledge under the renminbi loans limited to one-year liquidity loans, and after the pilot, all the relevant enterprises will be able to obtain long-term loans."　　People familiar with the matter said. The third pilot is the cancellation of deferred payment approval and registration, as well as prepaid, received payment only to register the amount of control, for deferred payment (i.e., 120 days after the date of issue of the Declaration), the first overtime to the foreign authority to explain the situation exemption from punishment.　　However, the agency will also step up the advance, the ex post facto monitoring and strengthening of such business enterprise end of the penalties to combat the foreign hot money in and out; the final pilot is to change the financial institutions ' external guarantee management policies, and the agency will relax such policies in a number of ways. "On the whole, the main purpose of these policies should be to help Chinese enterprises to obtain the same treatment as foreign companies, some of the" promotion of enterprises, growth "means.　　Said the people briefed on the matter. It can be seen that the first two policies will effectively help exporters evade exchange rate risk, while the latter two policies can reduce the management costs of enterprises.