Laws of the People's Republic of China

Reply of the Department of General Affairs of the State Administration of Foreign Exchange Concerning Approving to Authorize the Designated Foreign Exchange Banks to Examine the Transfer of Foreign Exchange Funds in the Non-resident Individual Foreign Exchange Accounts to the Capital Accounts of Foreign-funded Enterprises

Hui Zong Fu [2004] No. 27 May 17, 2004

Shanghai Bureau of the State Administration of Foreign Exchange:

Your Bureau's Request for Instructions about the Authorization to the Designated Foreign Exchange Banks to Examine the Transfer of Foreign Exchange Funds in the Non-resident Individual Foreign Exchange Accounts to the Capital Accounts of Foreign-funded Enterprises (Shanghai Hui Fa [2004] No.40) has been received. An official reply is hereby given as follows:

1.

Under the relevant provisions in Paragraph 2 of Article 1 of the Notice of the State Administration of Foreign Exchange on the Relevant Issues regarding the Improvement of Foreign Exchange Administration of Direct Investments by Foreign Investors (Hui Fa [2003] No. 30), we hereby consent your Bureau to authorize the appointed foreign exchange banks within your jurisdiction to verify the transfer of foreign exchange funds in the non-resident individual foreign exchange accounts to the capital accounts of foreign-funded enterprises.

2.

Your Bureau shall conduct the relevant business in the designated foreign exchange banks according to the Operational Procedures for the Designated Foreign Exchange Banks to Transfer the Foreign Exchange Funds in the Non-resident Individual Foreign Exchange Accounts to the Capital Accounts of Foreign-funded Enterprises as established by your Bureau.

3.

Your Bureau shall strengthen the inspection of the conducting such kind of business by the designated foreign exchange banks, and shall seriously cope with any problem as suffered by virtue of the relevant provisions.