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	CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON THE RELEVANT ISSUES CONCERNING THE FOREIGN EXCHANGE PURCHASE BY TRUST INVESTMENT COMPANIES TO MAKE UP FOREIGN EXCHANGE CAPITAL

	(Order 159 [2001] of the State Administration of Foreign Exchange)


SUBJECT : TRUST INVESTMENT COMPANIES; FOREIGN EXCHANGE PURCHASE; FOREIGN EXCHANGE CAPITAL
ISSUING DEPARTMENT : THE STATE ADMINISTRATION OF FOREIGN EXCHANGE
ISSUE DATE : 08/28/2001
IMPLEMENT DATE : 08/28/2001
LENGTH : 331 words
TEXT :

At the present time, the People's Bank of China has initially achieved its work of straightening out trust investment companies. According to the Measures for the Management of Trust Investment Companies as promulgated by the People's Bank of China, a trust investment company that engages in foreign exchange business shall have a sum of foreign exchange equivalent to US $15 million or more in its registered capital. We hereby notify the relevant issues regarding the foreign exchange purchase by trust investment companies to make up their foreign exchange capital upon the agreement of the People's Bank of China:

1. A trust investment company shall be registered again in the People's Bank of China before applying to the local foreign exchange bureau for foreign exchange purchase to make up its foreign exchange capital.

2. As for any application for foreign exchange purchase as filed by a trust investment company that meets the aforesaid requirements, the foreign exchange bureau shall give the relevant treatment according to the following principles:

(1) A trust investment company that has a self-owned foreign exchange capital of less than US$15 million may, for the part of balance, apply to the local branch of the foreign exchange bureau for foreign exchange purchase to make up its foreign exchange capital. The branch at the locality may, upon examination of the authentication thereof, approve the foregoing application for foreign exchange purchase;

(2) A trust investment company shall, when applying to the foreign exchange bureau for foreign exchange purchase, provide the certification document that the People's Bank of China has approved its re-registration as well as the certification documents of its self-owned foreign exchange capital which has been lately verified by an accounting firm;

(3) Where the amount of foreign exchange that a trust investment company applies for purchasing exceeds the balance between US $15 million and its self-owned foreign exchange capital, the foreign exchange bureau will, for the time being, not accept the foreign exchange demand for the excessive part.