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.”

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