Provincial, Autonomous Region, and Municipal Branches, Foreign Exchange Departments, Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo Branches of the SAFE, and designated China-funded foreign exchange banks:

To deepen the reform of the foreign exchange administration system, streamline administrative approval procedures, and regulate receipt and payment activities under cross-border guarantees, the State Administration of Foreign Exchange (SAFE) has decided to improve the methods of foreign exchange administration for cross-border guarantees and has developed the Provisions on Foreign Exchange Administration for Cross-border Guarantees and its operational guidelines (hereinafter referred to as “these Provisions”). These Provisions are now issued to you for implementation.

These Provisions will come into force as of June 1, 2014. If there is any inconsistency between previously issued regulations and these Provisions, these Provisions will prevail. When these Provisions become effective, the regulations as listed in Annex 3 will be repealed.

Upon receipt of these Provisions, the SAFE branches and Foreign Exchange Departments should promptly forward them to the central sub-branches, sub-branches, urban commercial banks, rural commercial banks, foreign banks, and rural credit cooperatives under their respective jurisdictions, and the China-funded banks should promptly forward them to the branches under their jurisdictions. Please contact the Capital Account Administration Department of the SAFE immediately should any problems be encountered in terms of their implementation.

Annex:

1. Provisions on Foreign Exchange Administration for Cross-border Guarantees

2. Operational Guidelines for Foreign Exchange Administration for Cross-border Guarantees

3.  Catalogue of the Repealed Regulations

The State Administration of Foreign Exchange

May 12, 2014