FDI Rmb settlement details released

November 08, 2011 | BY

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Increase in cross-border Rmb investments expected

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On October 14, the People's Bank of China (PBoC) and the Ministry of Commerce (Mofcom) released new sets of regulations relating to cross-border foreign direct investment (FDI) settled in renminbi (Rmb).

The PBoC rules, the Measures for the Administration of Renminbi Settlement Matters Relating to Foreign Direct Investment (中国人民银行外商直接投资人民币结算业务管理办法), deal with Rmb investments of foreign-invested enterprises (FIEs).

The Mofcom notice, the Circular on Issues Relevant to Cross-border Direct Investment in Renminbi (商务部关于跨境人民币直接投资有关问题的通知), addresses Rmb-denominated capital markets transactions.

The regulators' details on Rmb FDI aim to promote cross-border Rmb trade and investment, and support the development of Hong Kong's Rmb market.

The PBoC has stated that foreign investors