Core Viewpoint - The State Administration of Foreign Exchange (SAFE) is soliciting opinions on a draft notice aimed at further facilitating foreign exchange fund settlement to support stable foreign trade development, encouraging the inclusion of more new trade entities in the facilitation policy [1] Group 1: Trade Facilitation Policies - The draft encourages compliant banks to include trustworthy cross-border e-commerce platforms and foreign trade service enterprises, along with their recommended clients, in the trade facilitation policy or high-level open pilot [1][6] - It outlines various net settlement methods for trade-related payments, including general trade receipts between domestic and foreign affiliated enterprises, and expenses related to goods transportation, storage, and repairs [4][5] Group 2: Simplification for Multinational Corporations - Compliant banks can simplify the procedures for multinational corporations regarding the centralized management of current account funds and net settlement, provided they meet specific criteria [4][5] - The draft specifies that multinational corporations should conduct net settlements at least once a month and adhere to the trade facilitation policy or high-level open pilot regulations [5] Group 3: Employee Remuneration and Payment Facilitation - The draft allows compliant banks to determine exempt amounts for foreign employees' salaries based on provided documentation, enabling direct currency exchange without additional documentation within specified limits [5] - Banks are required to create tailored plans for enterprises, detailing the scope of applicable foreign employees and their salary arrangements [5] Group 4: Optimizing Foreign Trade Service Enterprises - Banks can process cross-border e-commerce settlements and related expenses based on electronic transaction information provided by foreign trade service enterprises, which must meet certain conditions [8] - Foreign trade service enterprises are required to have a robust risk control system and must disclose actual exchange rates to clients [8] Group 5: Service Trade and Project Management - The draft allows banks to directly handle service-related payment advances for trade, such as transportation and logistics costs, under certain conditions [9] - Enterprises engaged in overseas contracting can establish centralized management accounts abroad for better fund allocation and must report their account activities quarterly [9][10] Group 6: Special Foreign Exchange Business Handling - Banks are instructed to establish a system for handling special foreign exchange business related to current accounts, ensuring compliance with the principle of "substance over form" [10][11] - The notice emphasizes the importance of transaction authenticity and compliance monitoring by the SAFE [11]

Core Points - The State Administration of Foreign Exchange (SAFE) has issued a notice to further facilitate foreign exchange fund settlement to support stable foreign trade [1] - The notice includes measures to expand the scope of high-level open pilot areas for cross-border trade [1] - It aims to optimize foreign exchange fund settlement for foreign trade comprehensive service enterprises [7] Group 1: Expansion of Pilot Areas - The notice supports regions with genuine needs and compliant operating entities to implement high-level open pilot projects for cross-border trade after fulfilling relevant reporting procedures [1] Group 2: Net Settlement Business Types - The pilot areas will allow qualified banks to handle net settlement for various types of transactions, including general trade between domestic and foreign affiliated enterprises, and related costs such as transportation and storage fees [2] Group 3: Simplification for Multinational Corporations - Qualified banks can simplify procedures for multinational corporations regarding centralized fund management and net settlement, provided they meet specific criteria [3] Group 4: Employee Salary Exchange Facilitation - Banks are allowed to directly handle foreign exchange for foreign employees' salaries based on provided documentation, exempting them from submitting additional documents within a specified limit [5] Group 5: Inclusion of New Trade Entities - The notice encourages banks to include compliant cross-border e-commerce platforms and foreign trade service enterprises in the facilitation policies [6] Group 6: Optimization for Foreign Trade Service Enterprises - Banks can process cross-border e-commerce settlements and related expenses based on electronic transaction information provided by foreign trade service enterprises [7] Group 7: Service Trade Expense Management - Banks can directly handle service-related expense advances for trade after verifying the authenticity and reasonableness of the transactions [8] Group 8: Overseas Fund Management for Engineering Enterprises - Engineering companies operating in multiple countries can establish centralized management accounts for overseas funds after registering with the local foreign exchange bureau [9][10] Group 9: Special Foreign Exchange Business Mechanism - Banks are required to establish a mechanism for handling special foreign exchange business and report to the local foreign exchange bureau for transactions with legitimate backgrounds [11]

Group 1 - The People's Bank of China and the State Administration of Foreign Exchange announced a "policy package" aimed at enhancing trade facilitation and cross-border investment [1][2] - New trade facilitation policies will include reforms in foreign exchange management for trade, encouraging banks to include more new trade entities, and optimizing foreign exchange fund settlement for foreign trade service enterprises [1] - Cross-border investment and financing policies will support research institutions in attracting foreign investment, expand financing convenience for technology enterprises, and streamline capital project income usage [1][2] Group 2 - A comprehensive set of foreign exchange innovation policies will be implemented in free trade pilot zones, including optimizing international trade settlement and expanding the Qualified Foreign Limited Partner (QFLP) pilot [2] - Continuous support for the construction of Shanghai as an international financial center will be provided, enhancing the competitiveness and influence of the center [2]