Core Viewpoint - The State Administration of Foreign Exchange (SAFE) has issued a notice to deepen the reform of cross-border investment and financing foreign exchange management, which includes nine specific policies aimed at enhancing the convenience of cross-border investment and financing, optimizing capital project income and payment processes, and promoting a better business environment for high-quality economic development [1][2][3]. Group 1: Cross-Border Investment Management Reform - The notice cancels the basic information registration for foreign direct investment (FDI) pre-expense, allowing foreign investors to directly open pre-expense accounts at banks and remit relevant funds without prior registration [1]. - This cancellation is expected to reduce the "footing costs" for foreign investors and improve capital efficiency, facilitating faster investment implementation [1]. Group 2: Cross-Border Financing Management Optimization - The notice eliminates the registration requirement for foreign investment enterprises' domestic reinvestment, which had already been piloted in 19 provinces and cities, and will now be implemented nationwide [2]. - The macro-prudential management of cross-border financing by the People's Bank of China and SAFE limits corporate borrowing from foreign debts to a certain proportion of their net assets, which can hinder financing for high-tech and specialized small and medium-sized enterprises [2]. - Currently, 17 provinces and cities allow eligible high-tech and specialized small and medium-sized enterprises to independently borrow foreign debts up to the equivalent of $1 million, while other regions can borrow up to $500,000 [2]. Group 3: Increased Foreign Debt Quotas - The notice raises the foreign debt convenience quota for eligible high-tech, specialized, and innovative small and medium-sized enterprises nationwide to $1 million, with a special quota of $2 million for enterprises selected through an "innovation points system" [3]. - This policy is expected to help enterprises reduce financing costs, increase research and development investment, and promote technological advancement [3].

Domestic News - The Shanghai Futures Exchange and Dalian Commodity Exchange will expand the participation scope of qualified foreign institutional investors in commodity futures and options trading, effective from June 20, 2025 [1] - The State Administration of Foreign Exchange issued a draft notice proposing to cancel the registration of reinvestment by foreign-invested enterprises in China and allow foreign direct investment profits to be reinvested domestically [1] International News - U.S. President Trump reiterated that the Federal Reserve should lower interest rates [2] - The Israeli military reported that Iran has launched over 400 ballistic missiles at Israel; Israeli journalists claimed that Israel attacked Khamenei's underground headquarters in Tehran [3] - The International Atomic Energy Agency's Director General Grossi stated that there is no evidence showing Iran is manufacturing nuclear weapons [4] - Market news indicated that if the U.S. intervenes in the conflict between Israel and Iran, Russia threatens to intervene [4]

Investment Side - The notice cancels the registration requirement for foreign-invested enterprises' domestic reinvestment and expands the pilot program for this exemption nationwide [2] - Since 2022, the State Administration of Foreign Exchange has conducted pilot programs in 12 regions, including Shanghai, Jiangsu, and Guangdong, for direct bank handling of foreign debt registration [2] - The pilot program for foreign-invested enterprises' domestic reinvestment exemption and direct foreign debt registration will be expanded to Tianjin, Anhui, Shandong (including Qingdao), Hubei, and Sichuan [2] Financing Side - The notice allows foreign exchange profits from direct foreign investment to be reinvested domestically and promotes the "Kehuitong" policy for non-enterprise research institutions to receive foreign funds nationwide [4] - The cross-border financing facilitation limit for high-tech, "specialized and innovative," and technology-based SMEs is raised to a maximum of USD 10 million, while the limit for selected enterprises under the "innovation points system" is increased to USD 20 million [4] - The notice simplifies the registration management for cross-border financing, allowing participating enterprises to skip providing the last audited financial report during the signing and registration phase [4] Payment Facilitation - The notice reduces the negative list for capital project income usage and removes restrictions on using foreign exchange income for purchasing non-self-use residential properties [5] - This policy is part of macro-control measures to stabilize the real estate market amid overheating concerns [5] - The notice optimizes the capital project foreign exchange income payment facilitation, allowing banks to determine the frequency and proportion of post-event random checks based on client compliance and risk levels [5] - The notice promotes the facilitation of foreign individuals' property purchase payment in mainland China, allowing them to exchange foreign currency for property purchases before obtaining the necessary registration documents [5]

Group 1 - The State Administration of Foreign Exchange (SAFE) has proposed to increase the foreign debt facilitation quota for high-tech, "specialized and innovative" enterprises, and technology-based small and medium-sized enterprises to a maximum of USD 10 million [1] - The quota for eligible enterprises selected through the "innovation points system" will be raised to a maximum of USD 20 million [1] - The proposal includes simplifying the registration management for cross-border financing facilitation, allowing companies to skip providing the most recent audited financial report during the signing and registration process [1]

Core Viewpoint - The State Administration of Foreign Exchange (SAFE) has drafted a notice to deepen the reform of cross-border investment and financing foreign exchange management, aiming to facilitate cross-border investment activities and optimize the business environment to support high-quality economic development [1][5]. Group 1: Cross-Border Investment Foreign Exchange Management Reform - The notice includes four investment policies: cancellation of pre-investment expense registration for foreign direct investment (FDI), cancellation of domestic reinvestment registration for FDI enterprises, allowance for reinvestment of foreign exchange profits generated domestically, and facilitation of foreign investment attraction by non-enterprise research institutions through the "Kehuitong" initiative [3][17]. - The "Kehuitong" initiative, previously piloted in 16 regions, will be expanded nationwide to simplify the process for non-enterprise research institutions to receive foreign funds [3][18]. - The cancellation of FDI pre-investment expense registration allows foreign investors to directly open accounts and remit funds without prior registration [6][17]. Group 2: Cross-Border Financing Foreign Exchange Management Reform - Two financing policies are proposed: increasing the foreign debt facilitation limit for high-tech, "specialized and innovative," and technology-based small and medium enterprises (SMEs) to $1 million, and raising the limit for selected enterprises under the "innovation points system" to $2 million [10][20]. - The simplification of signing and registration requirements for enterprises participating in cross-border financing will eliminate the need for audited financial reports from the previous year [11][20]. - The new policies aim to support technology innovation by allowing eligible SMEs to borrow foreign debt without being restricted by their net asset size [21]. Group 3: Capital Project Income Payment Facilitation Policies - Three policies are proposed to optimize capital project income payment facilitation: reduction of the negative list for capital project income usage, allowing banks to determine random checks based on client compliance and risk levels, and facilitating foreign exchange payment for overseas individuals purchasing property in China [23][24]. - The removal of restrictions on using capital project foreign exchange income for purchasing non-self-use residential properties reflects adjustments in response to the evolving real estate market [23]. - The facilitation of foreign exchange payments for overseas individuals will be expanded nationwide, allowing them to process payments before obtaining property registration documents [24].

Core Viewpoint - The State Administration of Foreign Exchange (SAFE) is seeking public opinion on a notice that aims to facilitate foreign individuals' foreign exchange settlement for purchasing real estate in China, expanding a pilot program from the Greater Bay Area to the entire country [1] Group 1: Policy Changes - The new policy allows foreign individuals to settle foreign exchange payments for real estate purchases before obtaining the property registration certificate, provided they meet local purchasing policy conditions [1] - The pilot program that was previously limited to Hong Kong and Macau residents in the Greater Bay Area will now be implemented nationwide [1]

Core Viewpoint - The State Administration of Foreign Exchange (SAFE) has proposed reforms to facilitate foreign direct investment (FDI) in China, including allowing reinvestment of foreign exchange profits within the country [1] Group 1: Policy Changes - The requirement for basic information registration of pre-investment expenses for domestic direct investment has been eliminated [1] - The registration requirement for reinvestment by foreign-invested enterprises in China will be abolished, expanding a pilot exemption policy to nationwide [1] - Foreign exchange profits from foreign direct investment are now permitted to be reinvested domestically [1] - The policy allowing domestic non-enterprise research institutions to receive foreign funds will be expanded from pilot regions to nationwide [1]

Core Viewpoint - The State Administration of Foreign Exchange (SAFE) has issued a notice regarding the reform of foreign exchange management for cross-border investment and financing, which includes the cancellation of registration for domestic reinvestment by foreign-invested enterprises [1] Group 1: Policy Changes - The notice allows foreign-invested enterprises to conduct domestic reinvestment using foreign capital and the RMB funds obtained from foreign exchange settlement without the need for basic information registration or change registration for the invested enterprises or equity transferors [1] - The funds for domestic reinvestment can be directly transferred to the relevant accounts, streamlining the process for foreign investors [1]

Core Viewpoint - The State Administration of Foreign Exchange (SAFE) is soliciting public opinions on the draft notice regarding the deepening of foreign exchange management reforms related to cross-border investment and financing [1] Group 1 - The draft notice aims to enhance the management of foreign exchange in cross-border investment and financing activities [1] - The reform is expected to streamline processes and improve the efficiency of cross-border capital flows [1] - The initiative reflects the government's commitment to optimizing the foreign exchange management system to support economic development [1]

《国家外汇管理局关于深化跨境投融资外汇管理改革有关事宜的通知（征求意见稿）》公开征求意见 智通财经6月18日电，国家外汇管理局起草了《国家外汇管理局关于深化跨境投融资外汇管理改革有关 事宜的通知（征求意见稿）》，现向社会公开征求意见。《通知》包括三方面9项具体政策： （三）3项支付便利政策。一是缩减资本项目收入使用负面清单，取消资本项目外汇收入及其结汇所得 人民币资金不得用于购买非自用住宅性质房产的限制。二是优化资本项目外汇收入支付便利化业务。允 许银行在统筹便利化服务和风险防范前提下，依据客户合规经营情况和风险等级等自行决定便利化业务 事后随机抽查的比例和频率。三是便利境外个人境内购房结汇支付。将港澳居民在粤港澳大湾区购房结 汇支付便利化试点政策推广至全国，允许境外个人在满足各地购房政策条件下，可以在取得房地产主管 部门出具的购房备案证明文件之前，凭购房合同或协议先行在银行办理购房相关外汇资金的结汇支付， 后续再向银行补交购房备案证明文件。 （二）2项融资端政策。一是扩大跨境融资便利。将高新技术、"专精特新"和科技型中小企业外债便利 化额度统一提高至不超过等值1000万美元。将有关部门依托"创新积分制"遴选 ...