The Shanghai Head Office of the People's Bank of China ("PBC"); all branches and operations offices of the PBC; all central sub-branches of the PBC in capital cities of provinces (autonomous regions) and sub-provincial cities; all policy banks, state-owned commercial banks and joint-stock commercial banks; and Postal Savings Bank of China:

For the purposes of implementing the Notice of the State Council on Several Measures for Promoting the Growth of Foreign Investment (No. 39 [2017], State Council), improving and optimizing cross-border RMB service policies, promoting trade and investment facilitation, creating a good business environment, serving the construction of the "Belt and Road", and contributing to China's comprehensive efforts of opening up, you are hereby notified of the relevant matters as follows:

I . Supporting cross-border RMB settlement of enterprises

Any cross-border transaction permitted by the law to be settled in foreign exchange may be settled in RMB. Banks shall, oriented to serving the real economy and promoting trade and investment facilitation and according to cross-border RMB policies, innovate on their RMB financial products, improve their financial service capacities, and fully satisfy their customers' true demands for cross-border RMB services in compliance with regulations.

II . Providing individuals with other cross-border RMB settlement services under the current account

Banks may, on the basis of the three principles of "know your customer," "know your business," and "due diligence", provide individuals with other cross-border RMB settlement services under the current account.

III . Providing cross-border RMB settlement services for carbon emissions trading

An overseas institution conducting carbon emissions trading in RMB through a carbon emissions trading institution in China according to the relevant provisions issued by the carbon emissions trading authority of the State Council shall, in accordance with the Measures for the Administration of RMB Bank Settlement Accounts of Overseas Institutions (No. 249 [2010], PBC), the Notice of the People's Bank of China on Issues concerning the Opening and Use of RMB Bank Settlement Accounts of Overseas Institutions (No. 183 [2012], PBC), and other rules, open a special RMB deposit account for carbon emissions trading of an overseas institution to handle receipts and payments of funds under carbon emissions trading.

IV . Facilitating direct investment in RMB of overseas investors

The relevant provisions of the Measures for the Administration of RMB Settlement for Foreign Direct Investment ( Announcement No. 23 [2011], PBC) and the Notice of the People's Bank of China on Clarifying the Detailed Operating Rules for RMB Settlement for Foreign Direct Investment (Order No. 165 [2012], PBC) shall be further improved and optimized as follows:

(1) An overseas investor intending to set up multiple foreign-funded enterprises or projects within China may separately open special RMB deposit accounts for front-end costs.

(2) The information registration and review of a foreign-funded enterprise shall be conducted by the bank at the place where the enterprise is registered through the cross-border RMB payment and receipt information management system, and the branch office of the PBC at the place where the enterprise is registered shall conduct ex post management.

(3) A foreign-funded enterprise may open a special deposit account for RMB capital at an out-of-town bank, and may open several special deposit accounts for RMB capital. Funds may be mutually transferred between special deposit accounts for RMB capital under the same name.

(4) Where the RMB capital and overseas borrowings of a foreign-funded enterprise are used for wages, travel expenses, and minor purchase and other expenditures, a bank may, on the basis of the aforesaid three principles for business development, directly handle such expenditures to the enterprise's payment order.

(5) Where an overseas investor participates in the transfer of state-owned property rights in a domestic enterprise in RMB, if a deal is reached, the RMB security deposit remitted to the institution designated by the state-owned asset supervision and administration department may be transferred into the corresponding special deposit account as a payment for the subsequent property right transaction or a contribution to the subsequently formed foreign-funded enterprise. If no deal is reached, the RMB security deposit remitted into China by the overseas investor shall be remitted out of China according to the original route of remittance.

For other business activities under foreign direct investment that involve the inbound remittance of RMB security deposits by overseas investors or for which domestic third-party institutions receive RMB transaction payments according to the relevant provisions issued by the state, transfer of funds may be governed, mutatis mutandis, by the aforesaid provision.

(6) For profits, dividends, and other investment returns legally obtained within China by overseas investors, banks shall, after examining the relevant supporting materials as required, handle cross-border RMB settlement to ensure that the profits of overseas investors are freely remitted out of China according to the law.

V . Facilitating the inbound remittance and use of RMB funds raised overseas by enterprises

A domestic enterprise issuing RMB bonds overseas may, after undergoing the relevant formalities according to the provisions on the comprehensive macro-prudential regulation of cross-border financing, remit the funds raised into China and used as actually needed. RMB funds raised by a domestic enterprise through an overseas stock issue may be remitted into China and used as actually needed.

Banks shall fulfill their information submission obligations, and submit information to the cross-border RMB payment and receipt information management system in a timely, accurate, and complete manner. In providing cross-border RMB services, banks shall, in accordance with the Anti-Money Laundering Law of the People's Republic of China and other relevant provisions, practically fulfill their obligations to combat money laundering, financing of terrorism, and tax evasion.

This Notice shall come into force on the date of issuance. For any discrepancies between this Notice and any relevant provisions previously issued, this Notice shall prevail.

The PBC branch offices at and above the level of a central sub-branch in a sub-provincial city shall forward this Notice to all branch offices of the PBC, foreign-funded banks, and local corporate financial institutions within their respective jurisdictions.