China Updates- Foreign Investment & Foreign Exchange

Foreign Investment Catalogue

On 13th March, the NDRC and MOFCOM issued released the2015 version of the Foreign Investment Industrial Guidance Catalogue to replace thecurrent (2011) catalogue. The new catalogue is effective from 10th April 2015.

Although there is a continuing overall relaxation of categories deemed suitable for foreign investment (e.g. for logistics, retail and wholesale, e-commerce and finance),several categories that were relaxed in the 2011 catalogue have been tightened back up, mainly in the culture and entertainment industries, perhaps not surprisingly given the widely publicised movement for democracy in Hong Kong (although yellow umbrellas have not yet been moved to the restricted list).

Foreign Exchange

In February, SAFE (the State Administration of Foreign Exchange) issued Circular 13, simplifying controls on cross-border foreign exchange transfers. The previous distinction between current and capital account transfers continues to apply (current account transfers already being relatively straightforward, generally requiring only that supporting commercial documentation be submitted to the commercial bank) but the rules on capital account transfers are being relaxed. For example, registration with the commercial bank for capital account items will take the place of registering with SAFE and the bank will be responsible thereafter.

***
Primasia will post the updates of Hong Kong and China from time to time. Follow us on our Website/ Blogger/ LinkedIn and stay tunned for our updates!

===================================================================

Need more information?
Please contact:
John Barclay -Email
Teresa Tam - Email 
--------------------------
Follow us on:
Website: Primasia HK / Primasia China
LinkedIn: Primasia
--------------------------
Primasia Corporate Services Limited
Tel: +852 2882 2088
Suite 1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong