Laws of the People's Republic of China

    Article 1  These Measures are formulated to protect the economic
interests of returned overseas Chinese, the family members of overseas
Chinese and residents in China who have foreign exchange receipts, and to
facilitate the use of foreign exchange by residents in China who are
permitted to go abroad for private business.

    Article 2  Residents in China mentioned in these Measures refer to
Chinese citizens residing in the People's Republic of China and foreigners
(including stateless personnel) setting in the People's Republic of China.

    Article 3  Foreign exchange held by residents in China mentioned in these
Measures refers to foreign exchange remittances from abroad to residents in
China, their foreign currency deposits in domestic banks and foreign currency
cash in their possession.

    Foreign exchange to be used by residents in China going abroad for
private business mentioned in these Measures refers to travelling and
miscellaneous expenses in connection with their visits abroad to family
members or relatives, their settlement abroad and their selfpaid study
abroad; as well as the retirement pay, severance pay, subsidies for leave
from work or pension for the disabled and the survivors and other expenses
for those residents who go abroad for permanent residence.

    Article 4  When a resident in China receives the advice of remittance
from abroad, he/she has the discretion:

    (1) to sell the remittance to the foreign exchange swap center via the
bank;

    (2) to deposit the remittance with the bank;

    (3) to sell the remittance to the bank at the exchange rate published by
the State Administration of Exchange Control, and get certificates of
overseas Chinese remittances from the bank.

    Article 5  The local branch office of the State Administration of
Exchange Control shall designate a bank, on behalf of the local foreign
exchange swap center, to buy the foreign exchange from residents in China or
sell the foreign exchange to those going abroad for private business.

    Article 6  Foreign exchange deposits of, or cash held by, residents in
China may be sold to the foreign exchange swap center through the bank. The
bank shall, at the buying rate for swap advised by the local branch office of
the State Administration of Exchange Control, purchase the US dollars or HK
dollars from residents in China, and at the selling rate for swap, sell the
needed amounts of such currencies to the residents in China. When residents
in China sell foreign currencies other than US dollars and HK dollars to the
bank, the bank shall first, at the foreign exchange rate published by the
State Administration of Exchange Control, convert them into US dollars, and
then buy them at the buying rate for swap. The bank shall only sell US
dollars and HK dollars for residents in China going abroad for private
business.  

    Article 7  At the time of applying for foreign exchange by swap,
a resident in China going abroad for private business shall present the
following papers:

    (1) passport affixed with valid visa by the country of destination and
exit register card;

    (2) oneway or two-way pass to Hong Kong or Macao;

    (3) for a foreigner settling in China, foreigner residence permit
indicated with the character " " and passport affixed with two-way visa or
exit-entry permit for foreigners; and

    (4) for a resident in China going abroad for permanent residence,
certificate issued by relevant unit above the county level (county level
included); or, for the jobless, certificate issued by people's government of
township or town or the urban subdistrict office.

    Article 8  The quotas for the foreign exchange to be purchased by
residents in China going abroad for permanent residence are as follows:

    (1) The total amount of retirement pay, severance pay, subsidies for
leave from work or pension for the disabled and for the survivor in Renminbi
may all be converted into foreign currency; in case the amount of subsidies
for leave from work is below US$ 200, an amount of US$ 200 may be bought;  

    (2) After a resident is permitted to settle abroad, he/she may buy with
retirement pay, severance pay, subsidies for leave from work or pension for
the disabled and for the survivors received in China, against his/her
residence permit abroad and the valid evidence of being alive, foreign
currencies every six months at the rate for swap;

    (3) Jobless residents in China going abroad for permanent residence may
buy US$ 200.

    Article 9  Where international flight, train or ship tickets are to be
bought in foreign exchange, the bank shall allow exiting residents to buy a
sufficient amount of foreign exchange to cover the expenses for the tickets
from the departing place to the destination.

    Article 10  Residents in China may buy an amount of foreign exchange
enough to cover the actual membership fee for any international academic
society or the candidate fee for test of foreign language proficiency.

    Article 11  To cover miscellaneous expenses on their visits to family
members or relatives abroad, on their permanent residence abroad, on their
visits to family members or relatives in Taiwan, on their meeting with family
members or relatives in Hong Kong or Macao, on their self-paid study abroad,
and on their self-paid participation in international academic conferences,
exiting residents may buy foreign exchange for an amount up to the standard
set by the State Administration of Exchange Control.

    Article 12  The bank must sell the foreign exchange at the rate for swap
strictly in accordance with the stipulated items and standards, in case of
violations of these Measures, the responsibility of the violators directly
involved and that of the relevant leaders shall be investigated and due
punishments shall be imposed.

    Article 13  These Measures shall be interpreted by the State
Administration of Exchange Control.

    Article 14  These Measures shall go into force as of the date of
promulgation.