SHANGHAI – On February 28, the Shanghai State Administration of Foreign Exchange (Shanghai SAFE) issued the “ Notice Concerning Support for the Implementation of Foreign Exchange Administration in the China (Shanghai) Pilot Free Trade Zone” (Shanghai Huifa  No. 26, hereinafter referred to as the “Notice”). The Notice aims to simplify the process of foreign direct investment (FDI) and facilitates the management of capital accounts in the Shanghai free trade zone (FTZ) – a 28.78 square kilometer free-trade zone launched in 2013.
These reform measures move China one step closer to the liberalization of foreign exchange capital accounts and carry great importance for foreign investors with an eye on the Chinese market. Continue Reading