To further implement the guiding principles of the Fourth Plenary Session of the 20th Central Committee of the Communist Party of China, enhance the openness of capital account, and promote the high-quality development of the financial sector in serving the real economy, the People’s Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) jointly issued the Notice on Issues Concerning Capital Management for Overseas Listing of Domestic Enterprises (Yinfa No.252 [2025], hereinafter referred to as the Notice) on December 26, 2025. The Notice aims to further facilitate efficient fund raising of domestic enterprises in overseas financial markets.

Key elements of the Notice include: First, unifying the management policies for domestic and foreign currency. Proceeds from overseas listing, share reduction, or share transfers can be repatriated in foreign currency or RMB, while dividends paid by listed entities participating in the “full circulation” of H-shares to domestic shareholders shall be distributed in RMB within China. Second, facilitating the use of raised funds and the management of exchange rate risks on the domestic markets. Overseas-raised funds repatriated to China can be converted into RMB at the company’s discretion. Additionally, listed companies are free to choose their own channels for managing exchange rate risks within China. Third, simplifying management procedures and relaxing time limit requirements for registration. The Notice supports banks in directly handling registration for the overseas listing of domestic enterprises, and relaxes the time limit requirements for registration related to issuance, additional offerings, and share reductions. Fourth, further standardizing the management of raised funds. Funds raised from overseas listings, as well as proceeds from share reductions or transfers, shall in principle be repatriated to China. Any remaining funds from capital outflows for share purchases by shareholders or funds from transactions that are not completed shall be promptly repatriated. Enterprises meeting certain conditions are allowed to retain raised funds for use overseas.

Moving forward, the PBOC and the SAFE will continue to strengthen financial support for the real economy, improve cross-border capital management policies, and further facilitate cross-border investment and financing, thereby providing robust support for high-quality economic development.