The Xiamen Free Trade Zone Branch of CCB handles external debt signing and registration services for two enterprises. [Photo provided to ftz.xm.gov.cn]
The "Notice of the State Administration of Foreign Exchange Xiamen Branch on Conducting High-level Opening Pilot Projects for Cross-border Trade and Investment" was recently issued with the approval of the State Administration of Foreign Exchange (SAFE).
The Notice includes a total of eight policies, of which three are related to capital projects, including domestic reinvestment registration exemption for foreign-invested enterprises, direct handling by banks of foreign exchange registration for eligible non-financial enterprises borrowing foreign debts and listing overseas.
On the first day of the pilot program, three companies in the Xiamen Free Trade Zone became the first to enjoy the new policies.
Two of the companies processed foreign debt signing and registration services, with a total amount of 15 million yuan ($2.7 million), without the need for further registration with the State Administration of Foreign Exchange.
One company was exempt from reinvestment registration and conducted fund transfer for reinvestment of foreign-invested enterprises domestically, with an amount of 1.71 million yuan, saving time for the company in registering with the SAFE.
The beneficiary companies stated that the pilot policy significantly reduced costs and effectively improved the efficiency of cross-border investment and financing.
Next, the Xiamen FTZ will strengthen the promotion of pilot policies to ensure that all operating entities are able to benefit from the various policies and enhance the level of facilitation of cross-border foreign exchange receipts and payments.