央行、外汇局：境外上市募集资金原则上应汇回境内

Core Viewpoint - The People's Bank of China and the State Administration of Foreign Exchange have issued a draft notification to streamline the management of funds for domestic enterprises listed abroad, aiming to enhance cross-border financing convenience and support high-level opening-up [3][4]. Group 1: Background - The draft notification is a response to the need for unified management policies for cross-border funds related to domestic enterprises going public abroad, as existing policies are inconsistent [4]. - The shift from an approval system to a filing system by the China Securities Regulatory Commission necessitates updates to foreign exchange management policies [4]. - The existing management framework has been in place for over a decade, and feedback indicates that it lacks convenience in areas such as registration time requirements and fund exchange [4]. Group 2: Main Content - The notification consists of 26 articles, primarily focusing on the integration of foreign and domestic currency management policies [5]. - Funds raised from overseas listings can be repatriated in either foreign currency or RMB, using capital project settlement accounts for transactions [5]. - Companies can autonomously manage foreign exchange risks and choose their methods for hedging through banks or brokers [5]. Group 3: Simplification and Flexibility - The management procedures have been simplified, allowing banks to handle registration directly instead of the foreign exchange bureau [6]. - The registration time for issuing and increasing capital has been extended from 15 to 30 working days, while the time for reducing holdings has been adjusted from 20 working days before to 30 working days after the reduction [6]. - Companies are allowed to retain funds abroad for reasonable business needs if they have obtained prior approvals from relevant authorities [6][10]. Group 4: Fund Management Regulations - Funds raised from overseas listings should generally be returned to the domestic market, with specific provisions for retaining funds for direct investments abroad [10]. - The notification clarifies the management requirements for convertible bonds issued abroad and the conversion of such bonds into stocks [10]. - Companies must ensure that the use of raised funds aligns with the disclosures made in their prospectuses or bond offering documents [11]. Group 5: Compliance and Reporting - Domestic enterprises and their shareholders must comply with international balance of payments reporting requirements and maintain accurate records of transactions [17][18]. - Financial institutions are required to conduct thorough compliance checks on business registrations, account openings, and fund exchanges to prevent money laundering and terrorist financing [18]. - Violations of the notification may result in corrective measures and administrative penalties from regulatory authorities [18].