Domestic enterprises can use RMB to purchase foreign investment

Foreign investment by enterprises using RMB to import and export Control Bureau calculates that the amount of money remitted is about $30 billion, and that all types of enterprises can provide supplementary funds for foreign loans (reporter Somaly Mam) from August 1 this year, whether private, private or state-owned enterprises, all types of ownership can be financed through foreign lenders, At the same time, it is clear that domestic enterprises can use renminbi to purchase foreign investment.　　Yesterday, the State Administration of foreign exchange issued a circular on foreign exchange management of domestic enterprises, the relevant issues of the notice to make the above provisions. The new rules issued by the agency, which do not exceed the owner's equity, extend the foreign lenders and sources of funding for the 30%. The reporter learned that, according to the current method, enterprises able to lend abroad at least three investment enterprises abroad, and domestic enterprises in the total investment of foreign enterprises must not be less than 5 million U.S. dollars, which led to the "threshold" of foreign lenders relatively high, the main beneficiaries of funds are abundant large group of enterprises.　　According to the issuance of the "notice", all types of ownership enterprises with a good business record and in the past 3 years did not find foreign exchange violations, can provide loans to its foreign direct investment enterprises. In terms of funding sources, the agency expressly allows domestic enterprises to use renminbi for foreign lending.　　However, the Board requested that the amount of foreign lending should not exceed 30% of the lender's owner's equity and not exceed the investment in its offshore company agreement.　　At the same time, under the new rules, within approved limits and deadlines, domestic enterprises engaged in outbound lending can recycle the amount of offshore lending that has been recovered and implement the balance management, changing the way in which the original number of records has been recorded.　　To remit up to about 30 billion dollars, particularly noteworthy, the Agency's new rules allow domestic companies to use renminbi to buy foreign loans, which is the first time the agency has made clear that companies can buy renminbi, which means further liberalisation of capital projects, and will this loosening lead to massive cross-border capital flows? In this connection, the head of the foreign administration said that, before the policy came into effect, the foreign authority had a "stress test" on the size and possible impact of outflows from foreign lending policies, and the test results showed that since the amount of foreign lending would not exceed 30% of the lender's owner's equity, the preliminary estimate　　The money remitted is about 30 billion dollars. "Compared with China's total balance of payments and the size of foreign exchange reserves, this ceiling will not have a significant impact on the international balance of payments, the overall risk controllable."　　"said the agency.　　Data show that China currently reserves the world's first, as at the end of March foreign exchange reserves reached 1.95 trillion U.S. dollars.　　Expert interpretation: Further opening of capital projects at the time, Lu Commissar, chief economist at Societe Generale, said that the further opening of the capital project by the foreign authority was at its time. It is a good time to look at the investment opportunity. The current international financial market has stabilized, but asset and resource products prices in the long run are at a low level, is currently a rare opportunity for long-term strategic investment, and thus, from the perspective of encouraging "go out"Look, the timing of the current policy is very good. From a financial security point of view is also a good time.　　As a result of the financial turmoil in the extreme situation, many institutions hold excessive dollar liquidity, in the context of the stability of international financial markets, the emergence of emerging economies, including China, the momentum, the further liberalisation of capital outflow control, can avoid causing unrest. From the point of view of promoting trade is the necessary time. According to the experience of other South-East Asian countries, foreign investment can often be promoted mutually with stable trade.　　In the current difficult situation of foreign trade, further liberalization of corporate lending restrictions conducive to stable foreign trade.　　The term "foreign lending" refers to the domestic enterprises (except financial institutions) within the approved quota, by the amount, interest rate and time limit stipulated in the contract, to provide direct loans to the wholly-owned subsidiary enterprises or participating enterprises lawfully established abroad.　　Foreign lenders may take the following forms: first, direct lending, that is, the domestic enterprises directly to its outside the legal establishment of wholly-owned subsidiaries or equity enterprises to provide loans, and the second is through the designated Bank of foreign exchange by way of entrusted loan. In addition, if a domestic enterprise is affiliated with a business group with foreign exchange qualifications of the Enterprise Group Finance company, can also through the Enterprise Group Finance company to lend by way of entrustment.