Issued by:    State Administration of Foreign Exchange
Issue No.:    Huifa [2025] No. 43
Release Date:    September 15, 2025
Effective date:    September 15, 2025
Links:    https://www.safe.gov.cn/safe/2025/0915/26538.html
The most significant highlight of this Notice is the reduction of the negative list governing the domestic use of foreign exchange income from capital items (including capital funds and foreign loan) and the RMB funds obtained from the settlement thereof, eliminating the restriction that such funds "must not be used to purchase non-self-use residential properties."
Other main contents are as follows:
Deepening the reform of foreign exchange management for foreign direct investment (FDI):
1)Before establishing a foreign-invested enterprise, foreign investors are no longer required to complete the basic information registration for preliminary expenses to open a preliminary expenses account.
2)The registration requirement for domestic reinvestment by foreign-invested enterprises is abolished. This policy was previously piloted in some provinces and cities and is now extended nationwide.
3)Foreign investors are now permitted to use legally obtained foreign exchange profits for domestic reinvestment. Previously, only legally obtained RMB profits were allowed for domestic reinvestment.
4)Facilitating non-enterprise scientific research institutions to attract and utilize foreign investment. The " Science and Innovation Foreign Exchange Facilitation Scheme" pilot, previously implemented in some provinces and cities, is now extended nationwide.
Increasing the facilitation quota for cross-border financing. The foreign loan quota for high-tech enterprises, "Specialized, Refined, Unique, and Innovative" (SRUI) SMEs, and technology-based SMEs nationwide is uniformly raised to a USD equivalent of 10 million. For some eligible enterprises, the quota has been increased to a USD equivalent of 20 million.
Facilitating foreign exchange settlement and payment for foreign individuals purchasing residential properties in China. They can now settle and pay the foreign exchange funds for the residential property purchase at a bank based on the purchase contract, and subsequently submit the required purchase filing documents. It should be noted that the policy regarding residential property purchases by foreign individuals remains unchanged.