Regulations on Exchange Control of the People's Republic of China
Regulations on Exchange Control of the People's Republic of China
Regulations on Exchange Control of the People's Republic of China
Order of the State Council No.193
January 29, 1996
Chapter I General provisions
Article 1 These regulations are formulated with a view to improving the management of the exchange system, maintaining an equilibrium in balance of payments and promoting sound economic growth.
Article 2 The government agencies of the State Council in charge of exchange control and their local offices (hereafter the exchange control agencies for both) shall exercise exchange control in accordance with the law and assume the responsibility for the implementation of the regulations.
Article 3 Foreign exchange as referred to in the regulations includes means of payments and assets denominated in foreign currency for international settlement as the following:
1. foreign currencies, including bank notes and coins;
2. payment instruments denominated in foreign currency; including bills, bank certificate of deposit and certificate of postal deposit etc.
3. securities denominated in foreign currency, including government bonds, corporate debentures and stocks etc.;
4. Special Drawing Rights and European Currency Units;
5. other assets denominated in foreign currency.
Article 4 The regulations shall govern all activities related to the receipts and payments of foreign exchange as well as foreign exchange operations of domestic entities, individuals, foreign establishments, and foreign nationals in China.
Article 5 The government adopts a reporting system for balance of payments statistics. All entities and individuals involved in balance of payments transactions shall fulfill their obligations for reporting balance of payments statistics.
Article 6 Circulation of foreign currency is prohibited and foreign currency shall not be quoted for settlement in the territory of the People's Republic of China.
Article 7 Any entity and individual shall have the right to reveal or expose any activities in violation of the regulations on exchange control.
Any entity and individual who reveal, expose or assist in stopping various activities in violation of exchange regulations on exchange control shall be duly rewarded and the confidentiality of their identity shall be ensured.
Chapter II Foreign exchange for current account transactions
Article 8 All foreign exchange receipts of domestic entities for current account transactions shall be repatriated home and shall not be deposited abroad in violation of the relevant government regulations without authorization.
Article 9 All foreign exchange receipts for current account transactions shall be sold to the designated foreign exchange banks in accordance with the regulations issued by the State Council on selling and purchasing foreign exchange, or with approval deposited in the foreign exchange account with the designated banks for foreign exchange operations.
Article 10 Purchase of foreign exchange for current account transactions shall be conducted with the designated foreign exchange banks, in accordance with the regulations issued by the State Council on selling and purchasing foreign exchange, upon the presentation of valid documents and commercial bills.
Article 11 The collection of export proceeds and the payments for imports in foreign exchange by domestic entities shall be processed in accordance with the relevant government regulations governing the verification procedures for export proceeds and import payments.
Article 12 Foreign exchange owned by individuals can be held at their own disposal, deposited in banks or sold to the designated foreign exchange banks.
Individuals' foreign exchange savings deposit shall be placed with banks on a voluntary basis, withdrawn freely and bear interest with confidentiality for the depositors' identity ensured.
Article 13 Foreign exchange shall be provided for personal travel abroad up to a prescribed limit. Any requests for purchasing foreign exchange exceeding the limit shall be filed for approval by the exchange control agencies. Individuals carrying foreign exchange into or out of China shall declare their foreign exchange in the customs office. Individuals shall present to the customs office valid documents for carrying a large sum of foreign exchange exceeding the prescribed limit.
Article 14 Foreign assets held by Chinese citizens residing in China in the form of payment instruments and securities denominated in foreign currency etc.
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