|
Under revised rules by the State Administration
of Foreign Exchange (SAFE) that took effect on July 4, domestic
investors in SPVs are allowed to keep profits and dividends made
from such entities overseas.
Previously, they must repatriate such funds within 180 days.
The regulator had lifted a ban on loans made by domestic firms
to their overseas SPVs - entities created for a specific,
limited and normally temporary purpose - and simplified rules on
the establishment of such entities, it said.
The revision of rules was aimed at supporting outbound
investment by domestic firms and individuals and "improving (yuan)
convertibility in cross-border capital and financial transaction
in an orderly manner", it said.
But the regulator will monitor investment in SPVs and fund
repatriation to crack down on fake transactions, it said.
The regulator has in recent months cut red tape and relaxed
foreign exchange controls, as part of gradual reforms to make
the yuan fully convertible although no time frame has been set.
(Reporting by Kevin Yao; Editing by Jacqueline Wong)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
