Wenzhou pilot individual outside direct investment suspended for less than half a month

Wenzhou personal foreign direct investment pilot in the case of the central branch of the State administration of foreign exchange in Wenzhou city, said that the Wenzhou capital through the underground channels to overseas has been an indisputable fact that the pilot is to the private foreign direct investment legalization, from the ground into the sun, can also be able to intercept the influx of hot money　　"Oriental Outlook weekly" reporter Huang Kujie | Wenzhou, Zhejiang Province, January 7, 2011, Wenzhou Foreign Economic and Trade Bureau in its official website High-profile release of "Wenzhou personal foreign direct investment pilot scheme", which marks Wenzhou as the first domestic to allow individuals to direct foreign investment in the city. Wenzhou's move immediately attracted the attention of the world, both at home and abroad media reported this matter, the outside world, the pilot or will be hundreds of millions of private capital in Wenzhou to find a new legal investment channels, which is also in line with the Chinese enterprises to go out of the big strategy.　　Wenzhou, a number of local economists also high-profile on various occasions, the pilot means that the Wenzhou Enterprise transformation and upgrade has a new space.　　Just as the outside world is full of anticipation, recently, people familiar with the matter told our correspondent that Wenzhou's personal foreign direct investment pilot has been suspended. The pilot has been suspended from reviewing the pilot, from January 7 onwards, its time less than half a month.　　People familiar with the matter told the Outlook Oriental Weekly, after domestic and foreign media coverage of the Wenzhou pilot, the State administration of foreign exchange has called Zhejiang and Wenzhou, said that the scheme has not been approved by the National Foreign Exchange administration, and the need for Wenzhou should not publicity, low-key treatment. The person at the same time also revealed that, for the sake of insurance, the Zhejiang side cold treatment, the individual foreign direct investment pilot work has been stopped internally. "At present, there is no individual to apply for foreign investment projects." If there are applications, the relevant units will also advise individuals to suspend the formalities, all to wait for the above meaning.　　"Funds go abroad, first there are projects, then the exchange of money investment, if the foreign currency administration to close the gate, the pilot is undoubtedly suffering from ice."　　Wenzhou Foreign Economic and Trade Bureau is the announcement of the pilot scheme, is also the approval of individual foreign direct investment projects, Wenzhou Foreign trade outside the director Zhouxiaoping to the reporter admitted that the Wenzhou as a pilot, indeed did not pass the approval of the State administration of foreign exchange.　　However, the pilot in Wenzhou is not without legal basis. As a pilot program, Zhouxiaoping said that the Wenzhou pilot is based on the implementation of the August 5, 2008 of the People's Republic of China Foreign exchange regulations 17th: "Domestic institutions, domestic individuals to foreign direct investment or engaged in foreign securities, derivative products issued, transactions, shall be registered in accordance with the provisions of the Foreign Exchange Administration Department of the State Council. If the state requires prior approval or filing by the competent authorities concerned, it shall apply for approval or filing formalities before the registration of foreign exchange. "" The foreign exchange regulations only say to the relevant management department for registration, after the relevant authorities approved or filed, but there is no regulation of which level of the competent authorities, Wenzhou, the pilot, playing is a ball.　　"Zhouxiaoping said. The people familiar with the matter said the pilot in Wenzhou meantThe transfer of foreign Exchange Management Authority to the prefecture-level cities, causing objections from the relevant departments of the State Administration of foreign exchange, the current Zhejiang provincial authorities are communicating with the State administration of foreign exchange, without obtaining superior support, the pilot moratorium. In fact, for the pilot, Wenzhou has long left behind.　　Zhouxiaoping said that the program is a pilot program, if not successful, it can be canceled, and will not have much impact.　　Nevertheless, in the interview with our correspondent, Zhouxiaoping or repeatedly expounded the significance of the pilot, he believes that the pilot will be Wenzhou "go out" strategy to advance a step forward, Wenzhou capital and internal and external interaction can be achieved, foreign investment subject more diversified, personal foreign direct investment is more convenient and standardized. Zhouxiaoping said: "At least through the pilot, we know how much money each year in the end of the outflow from the outside, can also know where the money flows to which areas, which industries."　　"The pilot scheme, which has attracted foreign attention and is now the official low-key treatment, has caused a cheering sound."　　According to the pilot scheme of January 7, the individual subject participating in foreign direct investment needs to have four conditions: holding the People's Republic of China identity card and obtaining the personal passport, with full civil capacity of 18 years of age or above; The pilot also provides for the amount of the individual's foreign direct investment, which stipulates that the total annual amount shall not exceed USD 200 million. Investors ' single outbound investment during the pilot period does not exceed the equivalent of USD 3 million.　　A number of investors jointly implement an offshore direct investment, the total amount of investment does not exceed the equivalent of 10 million U.S. dollars.　　In addition, the pilot programme has limited the way in which individuals invest in their foreign direct investment.　　According to the pilot scheme, the individual's foreign direct investment can be established by the new, mergers and acquisitions, such as the establishment of non-financial enterprises abroad or to obtain the ownership of Non-financial enterprises, control rights, management rights and other rights and interests.　　Wenzhou SME Association President Dewen to "Oriental Weekly" said that the pilot program issued by the attention of all sectors, foreign companies have speculated that the total amount of at least 800 billion yuan of private capital, will take the opportunity to go abroad, set off investment abroad tide. Dewen said: "At the recently concluded China-Africa Economic and Trade Forum, more than 10 countries, the ambassadors, more than 50 countries, counselors, have talked about this pilot work in Wenzhou, and hope that Wenzhou capital to invest in these countries, we have received dozens of advisory telephone." The introduction of the scheme will certainly be beneficial to the overseas investment of individuals, and now many people are concerned about the sustainability of the scheme.　　"Dewen that the pilot program restrictions strictly, in accordance with the program, only to allow investment in industry, which is very unfavorable to Wenzhou people's foreign investment, traditionally, Wenzhou people's foreign investment in business-oriented industry."　　According to data, the Wenzhou Regiment in New York only supermarket industry investment has more than 100 million U.S. dollars, in the Manhattan Small commodity wholesale market, more than 200 Wenzhou wholesalers to import at least 200 containers per week from mainland China, with each container 5 million yuan calculation, the annual transaction volume of up to 52 billion yuan. andIn South America's Argentina, Wenzhou-dominated Chinese supermarkets already have a 30% market share of the country's food and beverage retail market.　　As of 2009, more than 600,000 Wenzhou people in 93 countries and regions of entrepreneurship, set up more than 500 foreign enterprises.　　In response to the current situation of individuals who have not yet applied for direct foreign investment, Zhouxiaoping, director of the Wenzhou foreign trade and economic cooperation, believes that it is mainly an opportunity for industrial projects to invest, and some individuals are still watching. In Dewen's view, if the individual investment pilot trip, then Wenzhou capital may flow to Wenzhou, the largest gathering of overseas Chinese Europe, the second may be Africa and Latin America and other emerging market countries.　　As for the investment industry, he believes that Wenzhou SMEs will be the preferred automobile and motorcycle industry, electronic accessories and new energy industries such as Wenzhou traditional strong industries. Li Jianping, director of Wenzhou Folk Capital Service Center, believes that the biggest significance of this scheme is to allow Wenzhou individuals to legalize foreign investment, "2009, Wenzhou Investment in Shanxi coal mine failed lessons enough to show that the policy risk is far greater than the investment risk."　　Li Jianping said that if the pilot is successful, the Wenzhou Private Capital Service center will conduct a multi-directional overseas investigation for Wenzhou people to build overseas investment products to help Wenzhou capital smooth sailing.　　Wenzhou businessmen reacted coldly to the survey, the business sector was lukewarm about the pilot program.　　Cai, chairman of Zhejiang Merchants Capital Investment Promotion Association, who has long studied Wenzhou capital, said, in the past decade, Wenzhou private capital has rapidly expanded, Wenzhou capital to find investment opportunities in the country, and achieved great success, but with 2009 years of Shanxi coal to sign, Wenzhou Capital withdrawal from the energy sector, the number of foreign flows to overseas rapidly increased. "Capital nature is the benefit, Wenzhou Capital is international borderless."　　Cai said that Wenzhou capital through the underground banks to overseas channels have been very smooth. Cai that in recent years, Wenzhou Capital for foreign mineral resources favored, many people have been in Africa to invest in oil and mineral development, but the pilot scheme stipulates that individual foreign direct investment is not allowed to invest in the establishment of foreign special purposes of companies, related to China's prohibited exports of technology and goods, as well as energy, mineral foreign investment　　Foreign investments in countries with no diplomatic relations with China, foreign investment in specific countries or regions, and overseas investments involving multinational (regional) interests are not permitted. "It is difficult for the Government to accept the active Wenzhou capital in such a strict regulation of investment."　　Cai told our correspondent. According to Zhouxiaoping, before the pilot, Wenzhou capital to foreign investment, can only be registered companies to invest in the way. "If you want to invest abroad, first in Wenzhou to register a company, the company is a shell, through the company to the capital overseas, long time, complex procedures, and many overseas business opportunities are fleeting, so many Wenzhou businessmen would rather go underground banks, to transfer capital overseas."　　"Many of the businessmen in Wenzhou who have invested abroad have said they have no interest in the scheme and will not apply for it, as Zhouxiaoping said. A businessman surnamed ChenBetween Wenzhou and Canada, and a number of properties overseas, he said, the quickest way to finance is to take the underground banks. This newspaper reporter learned that these banks are generally open in overseas or Hong Kong, in the mainland rely on investment companies and guarantee companies business contacts, these companies have long been networked.　　Compared to the normal bank remittance, the underground banking procedures simple, fast, faster capital turnover speed. Mr. Chen said that the underground banks of foreign exchange and the normal exchange rate of some spreads, which is the profit of underground banks, "about 3 per thousand of the price difference, plus on the remittance."　　He said that such underground money remittance channels in Wenzhou has been quite common, and Wenzhou capital outflow corresponds to the inflow of hot money abroad. "The black market exchange price goes with the exchange rate, at any time changes, generally the morning is cheaper than the afternoon."　　Mr. Chen told our correspondent. State Administration of foreign exchange in Wenzhou Central Branch, said that the Wenzhou capital through the underground channels to overseas has been an indisputable fact that the pilot is to the private foreign direct investment legalization, from the ground into the sun, can also be able to intercept the inflow of foreign hot money.