SAFE to Optimize the Management of Funds for Overseas Listings by Domestic Firms

On January 14, 2025, the State Council Information Office held a series of press conferences on “the Effectiveness of High-Quality Development of China’s Economy” to introduce the financial support for high-quality economic development.

Regarding interest rate policy, the relevant person in charge of the central bank said that the central bank will continue to strengthen the implementation of interest rate policy, focusing on rectifying the illegal high-interest-rate solicitation through “manual supplementary interest”, and optimize public deposits and interbank demand deposit interest rate self-discipline management. Also, the central bank will maintain the basic stability of the RMB exchange rate at a reasonable equilibrium level and accelerate bank capital replenishment. At the same time, the central bank will strengthen cooperation with fiscal policy, guiding financial institutions to increase credit resources and optimize the credit structure.

In terms of foreign exchange management policies, the relevant person in charge of the Foreign Exchange Bureau said that it will continue to promote the policy of facilitating trade foreign exchange receipts and payments for high-quality enterprises; it will better support the collection of export proceeds, and simplify the procedures for foreign exchange payments for logistics, warehousing, and returns; it will study canceling the registration of upfront costs for foreign direct investment and domestic reinvestment; it will optimize the management of funds for the overseas listing of domestic enterprises, simplify the foreign exchange registration of overseas listings, and duly adjust upwards the amount of facilitated financing for science-and-technology-based enterprises.