Recently, the State Administration of Foreign Exchange (SAFE) has formulated and issued the Guidelines for Foreign Exchange Business under the Capital Account (2024 Edition) (the "Guidelines"), with effect on May 6, 2024.
The Guidelines, serving as a manual for foreign exchange business under the capital account, incorporate the latest laws and regulations as well as operational practices to enhance the convenience and operability of business handling. Specifically, firstly, based on management practices, certain principles for handling of business are further refined and clarified to enhance operational feasibility, making it more convenient and efficient for institutions, individuals, and other subjects to conduct business. Secondly, the Guidelines integrate the achievements of the latest laws and regulations as well as policy documents such as those on foreign exchange administrative licensing to update relevant content. Thirdly, the Guidelines streamline chapters, optimize the layout, and improve the clarity of the chapter structure. Among them, the Guidelines specify the debt-equity swap procedures for overseas lending by domestic institutions; and add new circumstances for foreign shareholders to participate in the subscription of convertible corporate bonds publicly issued by domestic enterprises in the A-share market.