SAFE Circular No. 37: New Rules Regulating Round-Tripping Investment by Chinese Entrepreneurs


On July 14, 2014, the State Administration of Foreign Exchange (the “SAFE,” Chinese regulator on foreign exchange matters) promulgated the Circular on the Relevant Matters Concerning Foreign Exchange Administration on Outbound Investment/Financing and Round-Tripping Investment through Special Purpose Companies by Domestic Residents (the “Circular No. 37”).

This new Circular supersedes all prior SAFE regulations on round-tripping investments, including the well-known Circular on Issues Relating to Foreign Exchange Administration of Financing and Round-Tripping Investment by Domestic Residents Utilizing Offshore Special Purpose Companies of 2005 (the “Circular No. 75”).

To read the full publication, please click on the PDF linked below.


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