The SAFE branches and foreign exchange administration departments in Tianjin, Shanghai, Jiangsu, Shandong, Guangdong, Beijing, Heilongjiang, Zhejiang, Fujian, Guangxi, Hainan, Yunnan, and Xinjiang (provinces, autonomous regions, and municipalities directly under the Central Government), and the SAFE branches in Shenzhen, Qingdao, Xiamen, and Ningbo:
In August 2008, the State Administration of Foreign Exchange (SAFE) granted approval for the pilot implementation of  domestic and foreign currency exchange franchise business to individuals in Beijing and Shanghai. The implementation has achieved the expected results, with relevant work progressing smoothly. For the purpose of promoting fair competition in the  domestic and foreign currency exchange franchise market to individuals and further improving the overall level of Chinas individual currency exchange services, with the approval of the State Council, the relevant issues concerning the expansion of the pilot implementation of the domestic and foreign currency exchange franchise business to individuals are hereby notified as follows:
1. The locations of the pilot implementation shall be expanded to the provinces and municipalities (autonomous regions), including Tianjin, Shanghai, Jiangsu, Shandong, Guangdong, Beijing, Heilongjiang, Zhejiang, Fujian, Guangxi, Hainan, Yunnan, and Xinjiang, as well as the cities specifically designated in the state plan, including Shenzhen, Qingdao, Xiamen, and Ningbo.
2. The branches of the SAFE (foreign exchange administration departments, hereinafter referred to as SAFE branches) located in the areas of the pilots in principle shall select one city or one region at the prefectural or city level based on its actual economic and social conditions to be the location of the pilot implementation.
3. The SAFE branches in the newly-added pilot locations shall, according to the requirements set forth in Annex`&a, submit applications to the SAFE for approval regarding the pilot implementation. The SAFE shall decide whether or not to grant approval, according to the applicants preparations for the pilot work and the actual demands of the local market.
4. In the event that the SAFE branches in the pilot areas (including Beijing and Shanghai) grant approval to establish new operations institutions for the pilot implementation of the  domestic and foreign currency exchange franchise business (including cross-regional operations institutions), the SAFE branches shall submit for approval to the SAFE a summary regarding the situation for the pilot implementation of the domestic and foreign currency exchange franchise business to individuals prior to the application, along with the Form on the Status of Operations Institutions Applying for Pilot Implementation (see Annexa).
5. The SAFE branches in the pilot locations shall carry out pilot implementation of the  domestic and foreign currency exchange franchise business to individuals in strict compliance with the Measures for the Administration of Pilot Implementation of the  Domestic and Foreign Currency Exchange Franchise Business to Individuals (see Annex b), strengthen publicity and explanatory work regarding the pilot implementation, carry out supervision of compliance of the institutions in the pilot implementation of the  domestic and foreign currency exchange franchise business to individuals with the relevant foreign exchange administrative regulations and shall report to the SAFE any relevant situations regarding the pilot implementation in a timely manner.
Tel.: 010-68402310, 68402313
It is hereby notified.

Nov. 9, 2009

Annex (omitted)