China's forex regulator unveils policies to facilitate cross-border investment, financing

BEIJING - China's foreign exchange regulator on Monday announced a package of facilitation policies aimed at deepening reforms in cross-border investment, financing and forex management.

The policies cover areas such as foreign direct investment (FDI), corporate cross-border financing, and forex settlement and payment for overseas individuals purchasing property on the Chinese mainland, according to the State Administration of Foreign Exchange.

For FDI, the regulator will remove the requirement to register basic information for preliminary fees related to FDI and permit forex profits under FDI to be reinvested within the mainland.

For capital account incomes and payments, the regulator will cut the negative list restricting the use of forex incomes from capital projects, and the use of such funds to purchase non-owner-occupied residential properties will now be permitted.

As the domestic property market has undergone changes in recent years, corresponding forex management needs to be refined to adapt to the new situation, supporting the stable development of the property market, said Li Bin, deputy head of the administration.