The Ministry of Commerce has issued an Announcement in connection to issues relating to cross-border direct investment in RMB. The Announcement clarifies that foreign-invested companies are not permitted to use cross-border RMB direct investment funds to invest directly or indirectly in China in negotiable securities or financial derivatives or make entrusted loans, except where they make strategic investment in listed companies. The Announcement has become effective from January 1st, 2014.

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