China Flags Reform of Cross-border Investment for Privately Offered Equity Funds
China’s forex authority has outlined a raft of reforms for the second half of 2020.
The State Administration of Foreign Exchange (SAFE) convened its second-half work teleconference on 31 July, where it outlined its reform agenda for the remainder of the year.
This reform agenda is set to include:
- Deepening forex reform and opening;
- Implementing various measures to increase the convenience of forex usage;
- Expanding trials for the convenience of trade expenditures and receipts;
- Driving digitisation of forex tax filing for services trade;
- Exploring administrative reforms for management of cross-border investment involving privately offered equity investment funds;
- Continuing to stabilise bi-directional opening of the financial market, and mutual linkages and connections.
SAFE also said that it would “strengthen macro-prudential administration of cross-border capital flows, improve forex market management” and “have a zero-tolerance attitude towards cross-border gambling and other forms of illegal forex activity.”