ANNOUNCEMENT 16 Dec 2013In December 2013, the government of China announced a rule change for commercial cross-border financial flows.
NUMBER OF INTERVENTIONS
Ministry of Commerce, Announcement no. 87 of 2013 (English translation, only the original text in Mandarin is legally binding): http://english.mofcom.gov.cn/article/policyrelease/aaa/201312/20131200436266.shtml
Reuters, December 16, 2013, 'China eases rules to boost yuan-denominated foreign investment': http://www.reuters.com/article/2013/12/16/china-yuan-fdi-idUSL3N0JV1ZB20131216
China Daily, December 17, 2013, 'Less control on cross-border yuan investment': http://www.chinadaily.com.cn/bizchina/2013-12/17/content_17179020.htm
On December 16, 2013, China's Ministry of Commerce (MOC) published Announcement no. 87 of 2013 on Issues Concerning Cross-Border RMB Direct Investment, which makes it easier for overseas investors (including investors from Hong Kong, Macao and Chinese Taipei) to invest in RMB-denominated funds in Mainland China.
Previously, foreign investors had to specify the sources of their yuan funding, and the regulations required the provincial bureaus, where the investments were to be registered, to report to the MOC for further approval if the amount of investment exceeded RMB 300 million (US$49 million), or if the investment was to be done in certain sectors.
These two requirements have been lifted in the new regulations, effective as of January 1, 2014.
Foreign investors must still comply with the other provisions of Chinese foreign investment law and anti-monopoly law (which covers mergers and acquisitions.)