Yantai Foreign exchange administration

Preferential treatments to foreign exchanges remitted in for investment and obtained by offshore borrowings, bond or stock issues make by foreign legal persons or natural persons, and to foreign exchange returns made by foreign-funded enterprises will remain valid. They may not settle their foreign exchange accounts at the designated banks to open accounts, to retain foreign exchanges of to make normal payments in foreign exchange.

Foreign-funded enterprises may make normal business payments in foreign exchange and foreign investors profit, stock and bonus can be remitted from the balance of their cash accounts directly without being examined and approved in advance. Payments in excess of the balance of their cash accounts made to cover expenses in production and management, to repay capital with interest and to remit abroad bonus and capital foreign exchange transfers, upon examination and approval by the state Bureau of the Exchange Control, may be executed.

China will stick to it that foreign-funded enterprises should keep a balance between their foreign exchange income and expenditure. In case of failure, they may go to foreign exchange swap centers to buy foreign exchange at the market exchange rate published by people bank of China.

Foreign investors may, upon approval, reinvest their Renminbi profits earned from foreign-funded enterprises which can not keep a balance between their foreign exchange income and expenditure into inland enterprises that can earn foreign exchange or increase their foreign exchange earnings. In this case, foreign investors may enjoy the right of getting back part of their income tax handed over to the state and of obtaining foreign exchanges from the newly earned exchanges by the beneficiary enterprise so as to remit abroad their legal profits. When applying for reinvesting their Renminbi profits, foreigners are required to produce the profit distribution decision by the board of directors of the original enterprise and the certificate by the local exchange control department.