Announcement of the State Administration of Foreign Exchange

Announcement of the State Administration of Foreign Exchange

Announcement of the State Administration of Foreign Exchange [2003] No.1

April 15, 2004

According to the Decisions of the State Council on Canceling the First Batch of Administration Examination and Approval Projects (GuoFa [2002] No.24) and the Decisions of the State Council on Canceling the Second Batch of Administration Examination and Approval Projects and Altering the Administrative Methods for Some Administration Examination and Approval Projects (GuoFa [2003] No.5), the State Administration of Foreign Exchange has cancelled 26 items to be administratively approved. The relative issues after these items are cancelled for administrative approvals are hereby announced as follows:

I.The "examination and approval of opening, altering and canceling accounts for foreign exchange loans in China" is canceled

The administration on the specific domestic accounts for foreign exchange loans shall be in accordance with Article 4 of the Circular of the State Administration of Foreign Exchange on Reforming the Methods of Administration of Foreign Exchange in Domestic Foreign Exchange Loans (HuiFa [2002] No.125) promulgated by the State Administration of Foreign Exchange on December 6, 2002.

II.The "examination and approval of opening, altering and canceling accounts for B-share guarantee funds (hereinafter referred to as "B-share transaction settlement fund account") that opened at foreign-invested banks in China by securities companies" is canceled

When securities companies open or alter B-share transaction settlement fund accounts, Article 3 of Circular of the State Administration of Foreign Exchange on the Transitional Policy and Measures after Canceling Administrative Examination and Approval of Foreign Exchange Administration of Some Capital Projects (HuiFa [2003] No.50) promulgated by the State Administration of Foreign Exchange on April 1, 2003 shall be implemented.

III.Four items including "examination and approval of the conditions of Chinese organizations for long-and-medium-term loans in China", "examination and approval of the financial conditions of Chinese organizations for financing and leasing in China", "examination and approval of the time selection and financing conditions for issuing debts abroad" and "examination and approval of the financial conditions for project financing " are canceled

If Chinese organizations (including designated banks of foreign exchange) borrow long-and-medium-term loans, issue long-and-medium-term foreign currency bonds or perform financial leasing and financing, the provisions in Article 1 of the Circular of the State Administration of Foreign Exchange on the Transitional Policy and Measures after Canceling Administrative Examination and Approval of Foreign Exchange Administration of Some Capital Projects (HuiFa [2003] No.50) promulgated by the State Administration of Foreign Exchange on April 1, 2003 shall be implemented.

IV.The "examination and approval of large-amount financing for overseas branches of Sino-capital financial organizations" is canceled

When the overseas branches of Sino-capital financial organization in China raise large amount of funds, the provisions in Article 2 of the Circular of the State Administration of Foreign Exchange on the Transitional Policy and Measures after Canceling Administrative Examination and Approval of Foreign Exchange Administration of Some Capital Projects (HuiFa [2003] No.50) promulgated by the State Administration of Foreign Exchange on April 1, 2003 shall be implemented.

V.The "audit of the foreign exchange risks in overseas investments by domestic organizations" is canceled

According to the provisions in Article 4 of the Circular of the State Administration of Foreign Exchange on the Transitional Policy and Measures after Canceling Administrative Examination and Approval of Foreign Exchange Administration of Some Capital Projects (HuiFa [2003] No.50) promulgated by the State Administration of Foreign Exchange on April 1, 2003, the overseas investment risks of domestic organizations shall not be audited and approved by the administrations of foreign exchange, and the auditing procedures on the fund resources of overseas investments will be further simplified.
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