China debuts cross-border foreign debt facilitation pilot

A regional integration pilot area of foreign exchange management in Chengdu-Chongqing Area in southwestern China has been jointly launched, according to a statement of the Sichuan Branch of the State Administration of Foreign Exchange (SAFE) on Monday.

The launch of the pilot area, the first of its kind in China, is an important step to facilitate development of foreign-related business in Chengdu-Chongqing Area and explore the integration of regional foreign exchange management, the statement read.

Four major businesses will operate in the pilot area: Eligible non-financial companies will be allowed to conduct one-off foreign exchange registration management reform; Recorded transnational companies in SAFE Sichuan Branch or Chongqing Foreign Exchange Management Department are allowed to choose eligible banks for cooperation in cross-border capital centralized operation; Eligible companies are allowed to sign, alter and cancel foreign debt remotely, or withdraw non-financial transferred foreign debt and remotely record the act of repaying capital with interest.

"The pilot area will further facilitate the remote cross-border financing of eligible companies in Chengdu-Chongqing Area," explained a person in charge of the SAFE Sichuan Branch, adding "the centralized operation of cross-border capital of transnational companies will also be boosted."

The next step is to implement relevant pilot policies to accelerate construction of the Chengdu-Chongqing economic circle, according to the statement.