Domestic institutions to go to the sea first to mention RMB source of funds review change registration

Domestic institutions to "go to sea" the first mention of renminbi source of funds review to register. In addition, the provisions for the future of the renminbi regionalization and even international left "foreshadowing" Zhang Zhe in the future, domestic institutions to foreign direct investment without the need for a source of funding review, only after registration can-this will give enterprises "go out" to bring convenience.　　The State Administration of Foreign Exchange (hereinafter referred to as "FX Bureau") yesterday issued the "Foreign Exchange administration Regulations of domestic institutions (draft for soliciting Opinions)" (hereinafter referred to as "the draft of opinions") to clarify the source of funds for foreign direct investment of domestic institutions, and for the first time mentioned RMB as foreign direct In contrast to previous approaches, one of the biggest changes in the draft is the cancellation of prior scrutiny of sources of foreign direct investment and the subsequent registration. The foreign direct investment of domestic institutions shall, after obtaining the approval of the competent authority for foreign direct investment, Transact foreign exchange registration of overseas direct investment with the local Exchange Bureau, and explain its foreign exchange funds.　　This will greatly save business transaction costs and improve efficiency. The opinion draft mentions for the first time that the domestic institution shall carry out foreign direct investment in renminbi according to the relevant provisions of the State.　　A local bureau of Foreign Exchange Bureau people told CBN, the provisions for the future of the regional and even international left "foreshadowing." According to the draft, the expansion of foreign exchange funding sources of overseas investment has been further clarified, and domestic institutions may use their own foreign exchange funds, foreign exchange loans, renminbi purchases or in-kind, intangible assets and other foreign exchange asset sources approved by the Exchange Bureau for Foreign Direct Investment,　　Profits derived from foreign direct investment by domestic institutions may be retained for overseas direct investment abroad. Over the past few years, the scope of funding for offshore investment has expanded. In 2005, the foreign Exchange Bureau relaxed the source of foreign exchange funds for enterprises to invest abroad, from its own foreign exchange fund to foreign exchange loans and renminbi purchases, to expand foreign investment acquisition quotas, and no longer mandatory foreign investment profits remitted back to the territory, can stay abroad to increase capital or reinvestment.　　From July 1, 2006 onwards, the foreign direct investment purchase quota limit is completely cancelled. A foreign exchange bureau personage tells CBN, Renminbi uses in trade item valuation settlement pilot soon to launch, the renminbi uses as the investment valuation is the general trend, the renminbi valuation settlement specific stipulation will be promulgated by the Central bank.　　The relevant foreign Exchange management policy has reserved a "hole" in the draft. The draft also extended the previous provisions to allow domestic institutions in the preparatory stage before the formal establishment of their overseas projects, approved by the Exchange Bureau, to remit a certain proportion of their total investment upfront costs.　　Domestic institutions may provide commercial loans or financing external guarantees to foreign direct investment enterprises in accordance with the regulations on foreign exchange Administration and other relevant regulations. The changes have been brewing for a long time. Before the introduction of the draft, the domestic institutions overseas investment system foreign exchange management, can be traced back to the 1989 promulgated the "Overseas Investment foreign exchange management measures." In the past 20 years, with the change of foreign exchange Management system and market environment, the Exchange Bureau has introduced many supplementary regulations, many of which have been implemented or partly implemented. After the formal approach is introduced, a series of supplementary provisions will be fixed, domestic institutions "go out" foreign exchange management policy will form a more complete system.　　The subject of overseas direct investment, which is not included in the mainland, shall not include individuals in the territory. A local bureau of the Foreign Exchange Bureau believes that the controllability of individual OFDI is more difficult, the sources of funding are more complex, the evidence may be more difficult and personal mobility is greater. "After the implementation of enterprise-related measures to review, the study of individual foreign direct investment related methods more secure." "Foreign exchange officials have said that the relevant departments need to draw on international experience and combine the reality of our country to jointly study a viable personal foreign direct investment system, so that the flow of funds orderly outflow."