On May 10, 2013, the State Administration of Foreign Exchange (together with its branches, “SAFE”) released the Foreign Exchange Administrative Rules on Foreign Direct Investment by Foreign Investors (the “Administrative Rules”), the List of Abolished Laws and Regulations of Foreign Exchange Administration on Foreign Direct Investment (the “List of Abolished Laws and Regulations”) and the Operational Guidelines for Foreign Direct Investment Businesses (the “Operational Guidelines”). Based on the Circular on the Further Improvement and Amendment of Foreign Exchange Administrative Policies on Direct Investment (Hui Fa [2012] No.59, “Circular 59”) which adjusted the foreign exchange administrative policies on foreign direct investment by foreign investors1 (“FDI”), the Administrative Rules further simplify and integrate the operational steps and regulations on FDI foreign exchange administration, including foreign exchange registration, account opening and use, receipt and payment of funds, and settlement and sales of foreign exchange, etc. The rules and regulations under the List of Abolished Laws and Regulations were repealed on May 10, 2013, and the Administrative Rules and the Operational Guidelines took effect on May 13, 2013.
