The People’s Bank of China has issued Circular to improve cross-border RMB business to facilitate trade and investment on 5 January 2018. The circular stipulates that:
- Enterprises may use RMB to settle cross-border transactions qualified for foreign exchange settlement;
- Foreign investors planning establish multiple enterprises or projects in China can open RMB deposit accounts for upfront investment costs (人民币前期费用专用存款账户) for their respective enterprises or projects;
- Foreign-funded enterprises may open a special RMB deposit account in other areas of China, and they may open more than one special RMB deposit account for RMB capital. Capital funds can be transferred between accounts of the same name;
- Banks can handle direct instructions from foreign-funded enterprises on capital funds in RMB and funds borrowed from abroad for the payment of wages, travel expenses and minor purchases;
- Profits, dividends and return on investments of foreign investors in China shall be remitted to overseas after the bank has audited related documents according to the rules. The Circular is to ensure that foreign investors’ profits can be freely remitted in accordance with the law.
For more information, please visit PBOC.