The State Administration of Foreign Exchanges (SAFE) announced on Sunday that pilot reforms concerning MNCs' (multinational corporations) forex management will first be implemented in Shanghai's Pudong New Area.
Regional headquarters of MNCs that have set up finance centers in Pudong will be allowed to open accounts in domestic banks, allowing the better management of forex funds of overseas and domestic subsidiaries, according to the SAFE.
The reform loosens the limit on forex funds outflow of Chinese-funded MNCs, so as to encourage Chinese companies to invest overseas.
The reform simplifies the procedure concerning forex payments, making it easier for qualified corporations to enter inter-bank forex markets.
The SAFE said it would improve its evaluation and monitoring system on forex management of MNC regional headquarters.
The pilot reform follows the principles of "independent initiative, controllability and gradual progress," said the SAFE.
Among the 60 regional headquarters set up by MNCs in Pudong, six are headquarters for China, and 10 are headquarters for the Asia-Pacific region.
(Xinhua News Agency October 24, 2005)
