CHINA EASES FOREX RULES FOR INVESTMENT FIRMS OVERSEAS

China has loosened currency controls to make it easier for domestic companies and individuals to set up special purpose vehicles (SPVs) overseas, according to revised rules published by the nation's foreign exchange regulator.

Under revised rules by the State Administration of Foreign Exchange (SAFE) that took effect on 4 July 2014, domestic investors in SPVs are allowed to keep profits and dividends made from such entities overseas.

Previously, they must repatriate such funds within 180 days.

The regulator had lifted a ban on loans made by domestic firms to their overseas SPVs, entities created for a specific, limited and normally temporary purpose, and simplified rules on the establishment of such entities.