Small site provides big lessons

Financial initiatives

1. Starting Feb 10

Agency: State Administration of Foreign Exchange

－Administration of financial leasing services, provided by financial leasing companies at the FTZ to overseas companies, has changed from an approval-based to a registration-based system.

2. Starting June 1

Agency: State Administration of Foreign Exchange

－Foreign-invested enterprises at the FTZ can convert their registered capital in foreign currencies into renminbi based on their operational needs. In addition, they can apply for centralized management of foreign currencies of their member companies inside and outside of China.

3. Starting June 1

Agency: State Administration of Foreign Exchange

－Foreign-invested companies at the FTZ do not need administrative approval from the SAFE for overseas lending operations, especially when providing external guarantees. The companies are also not subject to the requirements on the proportion of net assets between the guarantor and the guarantee.

4. Starting June 11

Agency: People's Bank of China.

－Simplified cross-border RMB settlement under current and direct investment accounts in FTZ

－Individuals working at the FTZ can open settlement accounts to process RMB cross-border collection and payment, in accordance with relevant provisions. Foreigners need to present valid residence permits.

－Cross-border mutual RMB cash pooling with companies at the FTZ

－Centralized collection and payment of cross-border RMB under current account at the FTZ between Chinese and foreign enterprises.

5. Starting June 23

Agency: the China Banking Regulatory Commission

－Senior executives in the banking sector (or lower than branch-level) at the FTZ do not need prior approvals from the CBRC for access to the FTZ. Rather, the after-event reporting mechanism applies.

6. Starting July 11

Agency: China Banking Regulatory Commission

－Financial leasing companies at the FTZ are allowed to set up subsidiaries at home and abroad.

Reforms on investment policies

1. Starting March 1

Agency: State Administration for Industry and Commerce

－Business licensing process is simplified. A company may start production and operations as soon as it registers and obtains a license. Companies must report their registered capital, and the minimum capital requirement has been abolished.

2. Starting March 1

Agency: State Administration for Industry and Commerce

－Unified style of business licenses for enterprises in the FTZ.

3. Starting May 8

Agency: National Development and Reform Commission

－Reduced control over sectors accepting foreign investment.

4. Starting June 17

Agency: National Development and Reform Commission

－Foreign companies investing in China must notify the authorities rather than seeking prior approval.

5. Starting Oct 1

Agency: State Administration for Industry and Commerce

－Enterprises in the Shanghai FTZ must report their credit information annually. Those who fail to do so, or file inaccurate reports, will be put into an online watchlist.

6. Starting Oct 6

Agency: Ministry of Commerce

－For firms that are registered in the FTZ aiming to establish nonfinancial firms abroad by either opening new ones or acquiring existing firms, the processing system has changed from approval-based to registration-based.

FTZ official removed, Xinhua says	FTZ to allow foreign, private players in shipping industry