(A). Foreign-funded enterprises may legally open capital accounts and general accounts, the latter may be used for currency conversion for payment purpose.

   The income scope of capital account: transferred capital input.

   The expenditure scope of capital account: normal expenditure of foreign exchange and transfer of capital cash to the capital account of foreign exchange expenditure as per quota the foreign exchange control authorities have approved.

   The income scope of general account: normal revenue of foreign exchange.

   The expenditure scope of general account: for general purpose and 20% of the normal revenue of foreign exchange the business realized in the previous fiscal year as per quota in the general account of foreign exchange income under capital ledgers upon approval by the competent foreign exchange control authorities. On principle, the quota granted to a foreign-funded enterprise that has no revenue of foreign exchange in the previous fiscal year cannot be more than the amount equaling to USD 100,000.

   The foreign-funded enterprises in need may open 2 or more general foreign exchange accounts subject to approval.

   (B). Foreign enterprises are not required to ask foreign exchange control authorities for approval when they are getting loans but must go through registration formalities of foreign exchange. The sum of the accumulated amount of long/medium-term loans and short-term loans balance of foreign exchange should not go beyond the difference of the approved total investment to the registered capital.

   (C). In addition to the mode of investment with free convertible foreign currencies, import equipment, other materials and goods, intangible assets, profit in CNY and so on, the foreign investors may, once approved by foreign exchange control authorities, take the modes of investment as follows:

   (1). Development fund, reserve fund (or public capital fund, public surplus fund), etc. as increased capital.

   (2). Undistributed earnings, stock dividends payable and profits under the dividends payable, etc. as increased capital.

   (3). Principal of liabilities in foreign currencies foreign-funded enterprises have registered and the profit dues as increased capital.

   (4). Reinvestment in China with the investment returns, the assets from liquidation, share transfer, capital deduction and so forth.

   (D). The foreign-funded enterprises that are up to the requirements may apply to invest out of China .

   (1). Simplify the approval formalities for investment out of China, cancel the risk examination, abolish the deposits system of profit transfer while reserving the examination system of capital source of enterprises.

   (2). When investing out of China , the investment subjects should first use their own foreign currencies. When short, they may ask for domestic loans of foreign exchange, policy-related credits or loans from foreign commercial banks.

   (3). The investment subjects who are up to the requirements may apply to purchase foreign exchange as investment used out of China.

   (4). The profits and other earnings made by the outland businesses may be used for reinvestment.