On September 15th, the State Administration of Foreign Exchange issued the "Notice on Deepening the Reform of Cross border Investment and Financing Foreign Exchange Management" (hereinafter referred to as the "Notice"). The Notice includes three aspects: deepening the reform of foreign exchange management for cross-border investment, deepening the reform of foreign exchange management for cross-border financing, and optimizing the policy of facilitating payment of capital account income. Li Bin, Deputy Director and spokesperson of the State Administration of Foreign Exchange, stated in response to a reporter's question that in recent years, the State Administration of Foreign Exchange has continued to deepen reform and expand opening up in accordance with the ideas of system integration, stability and orderliness. Based on sufficient research and understanding of opinions and suggestions on foreign exchange business such as banks, enterprises, cross-border financing, and capital project income payments, the "Notice" has been formulated to continuously improve the convenience level of cross-border investment and financing, help attract and utilize foreign capital, and promote high-quality development of financial services for the real economy. Allowing domestic reinvestment of foreign exchange profits under FDI focuses on deepening the reform of foreign direct investment (FDI) foreign exchange management. Li Bin introduced that the "Notice" has four arrangements: firstly, canceling the registration of basic information on pre FDI expenses. Overseas investors who need to remit upfront fees before establishing FDI enterprises in China can directly open relevant accounts and remit funds. The second is to cancel the registration of domestic reinvestment by FDI enterprises. FDI enterprises carry out domestic reinvestment with foreign exchange capital and RMB funds obtained from foreign exchange settlement. The invested enterprise or equity transferor does not need to register for receiving domestic reinvestment, and the relevant funds can be directly transferred to the relevant account. This policy has been piloted in some provinces and cities in the early stage and has been running well. It is now being promoted to be implemented nationwide. The third is to allow foreign exchange profits under FDI to be reinvested domestically. Foreign exchange profits legally generated by FDI enterprises within the country and foreign exchange profits legally obtained by overseas investors can be reinvested within the country. The fourth is to facilitate non enterprise scientific research institutions to attract and utilize foreign investment. Clarify that domestic non enterprise scientific research institutions receive overseas funds and follow the relevant registration and exchange procedures for FDI enterprises. This is a pilot project of "Kehuitong" that was implemented in some provinces and cities in the early stage, and is now being promoted nationwide. Regarding the specific measures to deepen the reform of foreign exchange management for cross-border financing, Li Bin said: on the one hand, we will expand the convenience of cross-border financing for science and technology innovation enterprises, and uniformly increase the cross-border financing facilitation quota for high-tech, "specialized, refined, special and new" and technology-based small and medium-sized enterprises nationwide to an equivalent of 10 million US dollars. We will also increase the cross-border financing facilitation quota for some eligible enterprises selected based on the "innovation points system" to an equivalent of 20 million US dollars. On the other hand, simplify the management requirements for contract registration of enterprises participating in cross-border financing facilitation business, and no longer require relevant enterprises to provide audited financial reports for the previous year or the latest period during the contract registration process. Reducing the use of negative lists for capital project income, Li Bin said that optimizing the payment of capital project income will bring three major conveniences. Firstly, reduce the negative list of capital account foreign exchange income and its settlement income in RMB for payment and use within the country, and lift the restriction that it cannot be used to purchase non self use residential properties. The reporter learned that the negative list of foreign exchange income and its settlement income in RMB for domestic payment and use under the current capital account includes the prohibition of using it to purchase non self use residential properties. This policy is one of a series of regulatory policies issued by various departments targeting real estate enterprises and industries against the backdrop of overheated real estate market. The State Administration of Foreign Exchange, from the perspective of preventing speculation and speculation of "hot money", has cooperated to introduce measures that "capital, foreign debt and other funds of non real estate enterprises shall not be used for the construction or purchase of non self use real estate", playing a positive role in the stable and healthy development of the real estate market at this stage. In recent years, the situation of the domestic real estate market has changed, and macroeconomic control measures related to the real estate industry have been optimized and adjusted. Based on this, it is necessary to optimize and adjust relevant foreign exchange management measures to adapt to new situations and requirements, and to help the steady development of the real estate market. ”Regarding this policy adjustment, Li Bin explained. Secondly, optimize the facilitation of capital account foreign exchange income payments. Allow banks to determine the proportion and frequency of random inspections based on customer compliance and risk levels, in order to enhance the convenience of business experience for enterprises and help optimize the environment for foreign investment and development in China. Finally, facilitate overseas individuals' domestic home purchase settlement and payment. The convenience of home purchase, foreign exchange settlement, and payment for Hong Kong and Macao residents, which will be piloted in the Guangdong Hong Kong Macao Greater Bay Area, will be promoted nationwide. Overseas individuals who meet the qualifications of the real estate regulatory authorities and local purchasing authorities may, before obtaining the purchase registration certificate from the real estate regulatory authorities, first handle the foreign exchange fund settlement and payment for the purchase at the bank based on the purchase contract or agreement, and then submit the purchase registration certificate to the bank later. (New Society)