Laws of the People's Republic of China

Circular of the State Administration of Foreign Exchange on Distributing Operating Instructions for Current Foreign Exchange Accounts and the Purchase of Foreign Exchange by Domestic Residents

Hui Zong Fa [2006] No. 32 April 19, 2006

All branches and foreign exchange administration departments of the State Administration of Foreign Exchange (the SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government, the branches in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo, and all designated Chinese-funded foreign exchange banks:

For the purpose of earnestly carrying out Announcement No. 5 [2006] of the People's Bank of China and the Circular of the State Administration of Foreign Exchange on Adjusting the Policies Concerning the Administration of Current Foreign Exchange Accounts (Hui Fa [2006] No. 19), improving the administration of current accounts of foreign exchange and standardizing the operating, the State Administration of Foreign Exchange formulated Operating Instructions for Current Foreign Exchange Accounts and the Purchase of Foreign Exchange by Domestic Residents (see the Appendix, hereafter referred to as Operating Instructions) which specify relevant policies and requirements, clarify all provisions in the course of conducting transactions by administrations of foreign exchange and banks and thus contribute to facilitating the conduct of relevant transactions by domestic institutions and individuals.

The Operating Instructions are hereby distributed to you. The present Operating Instructions shall come into force as of May 1, 2006. In case of any problem encountered in the implementation of the present Circular, please report it on a timely basis to the SAFE.

Appendix:

1. Operating Instructions for Current Foreign Exchange Accounts and the Purchase of Foreign Exchange by Domestic Residents (Omitted)