The Administrative Measures for Pilot RMB Settlement of Overseas Direct Investments was promulgated by the People's Bank of China (“RMB Settlement Measures”) and came into effect as of January 6, 2011. The RMB Settlement Measures allow the banks and enterprises in pilot regions to make overseas direct investments in RMB.
- Approval from Overseas Direct Investment Authorities
Pursuant to the RMB Settlement Measures, domestic institutions, defined as non-financial enterprises registered in the pilot RMB settlement regions for cross-border trades, shall apply to the overseas direct investment authorities for approvals on RMB-denominated overseas direct investment. In particular, such domestic institutions shall specify the proposed amount of its RMB-denominated overseas investment.
- Registration with Foreign Exchange Authorities
A domestic institution shall submit the following materials to the local foreign exchange authority to handle the registration formalities for outbound remittance of front-end expenses or overseas direct investment:
- A written application form;
- The approval document issued by the overseas direct investment authorities and a copy thereof, or the copies of application documents submitted to the overseas direct investment authorities; and
- Copies of the business license and organization code certificate of the domestic institution.
The local foreign exchange authority shall finish the relevant registration formalities within three days after receiving the relevant application materials.
- Remittance and Settlement Processed by Banks
After registering with the foreign exchange authorities, banks may process RMB settlement services for the enterprises after verifying the approval certificate or equivalent documents issued by the overseas direct investment authorities.
Banks shall, pursuant to the Administrative Measures on RMB Bank Settlement Accounts (Order No.5  of the PBOC) and other relevant provisions, handle the RMB settlement of overseas direct investment through RMBdenominated bank settlement accounts of the domestic institutions, and report the relevant information regarding cross-border receipts and payments of RMB funds to the Cross-border RMB Receipts and Payments Information Management System.
- Administrative Measures for Pilot RMB Settlement of Overseas Direct Investments
- Issuing Authority: People’s Bank of China
- Date of Issuance: January 6, 2011 / Effective Date: January 6, 2011