Clifford Chance

Remittance of RMB Funds Raised Offshore : An Update on Regulatory Developments

18 October 2011

In October, both MOFCOM and PBOC have issued important circulars to clarify the regulatory framework for RMB foreign direct investment (RMB FDI). This briefing is an updated version of the previous briefing titled "Cross-border RMB financing: how are funds raised offshore remitted into China", that explains the source of RMB which qualifies for RMB FDI, the simplified approval procedures and the permissible scope of investment using such funds under the new MOFCOM circular. It further discusses the new PBOC circular which prescribes an account opening system for RMB FDI, and the implications of both circulars on RMB cross-border loans.

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