China’s foreign exchange regulator, State Administration of Foreign Exchange (SAFE), is seeking to simplify rules regarding the management of capital accounts to encourage trade and investment, China Daily reports, citing Xinhua. As per the new regulation, companies will not have to register with the local foreign exchange authority for deferred payment.
Foreign exchange remittance back home following the selling of state-owned stakes in overseas-listed companies can be directly carried out at designated banks. The new requirement will increase the benchmark ratio to 50% from 30% for advance payment under trade credit arrangements. The regulation will be effective from June 1, 2011.
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