On 1 December 1996, the People’s Republic of China (“PRC”) introduced a foreign exchange control system under which the Chinese currency, Renminbi (“RMB”), is conditionally convertible for current accounts, but strict administrative measures are still in place for capital accounts. The PRC Foreign Exchange Administrative Rules (the “Rules”) were promulgated on 29 January, 1996, and were amended on 14 January, 1997, and 5 August, 2008, by the State Council. The Rules and various circulars issued by the State Administration of Foreign Exchange (“SAFE”) have formed the prevailing legal basis for foreign exchange administration in the PRC.
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