Notice on the Public Solicitation of Opinions on Issues Related to the Management of Funds for Domestic Enterprises Listed Overseas by the Central Bank and the State Administration of Foreign Exchange

To improve and standardize the cross-border fund management of domestic enterprises listed overseas, enhance the convenience of cross-border financing for domestic enterprises, and promote high-level opening-up to the outside world, the People's Bank of China and the State Administration of Foreign Exchange have drafted the "Notice on Issues Related to the Management of Funds for Domestic Enterprises Listed Overseas" and are now seeking public opinions. Among them, it is mentioned that there will be a unified management policy for domestic and foreign currencies. Funds raised from overseas listings, reduction or transfer of shares can be repatriated in foreign currency or Chinese yuan, and the related funds can be remitted in and out of capital project settlement accounts. If repatriated in Chinese yuan, it can also be used in the domestic enterprise's Chinese yuan settlement account. Dividends from domestic shareholders of H-share "fully circulation" listed entities can be distributed in Chinese yuan domestically. The use of enterprise raised funds domestically and foreign exchange risk management is more flexible and convenient. Funds repatriated in foreign currency from overseas listing can be used for foreign exchange settlement autonomously. Listed entities can autonomously choose the method of foreign exchange risk management, and conduct spot settlement and sales of foreign exchange and hedging transactions through banks or securities firms.