Main contents: According to the Circular, when a foreign-invested company with an investment nature re-invests lawful income derived in China (including renminbi profits, capital reductions, liquidation, capital withdrawals, equity transfers, early investment recovery or other lawful income) in an enterprise in China, the exchange control bureau of the place where the company is located shall first issue a capital-account foreign exchange transaction approval document for a foreign investor increasing the registered capital of the company using renminbi profits or other such lawful income derived in China (Article 1).
State Administration of Foreign Exchange, Circular on the Operating Guidelines for Issues Relevant to Requests for Confirmation of Capital Verification Required in the Re-investment of Foreign-invested Companies with an Investment Nature
国家外汇管理局关于外商投资性公司再投资所涉验资询证有关问题操作指引的通知
Holding companies must increase capital before re-investment.
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