China’s foreign exchange authorities said on Tuesday that foreign companies are free to remit profits out of the country using normal procedures, in the latest effort to reassure investors that new capital controls aren’t overly restrictive. The Financial Times reported in December that several European companies have been unable to repatriate profits from China due to foreign exchange controls. That report followed a series of other moves to clamp down on foreign currency outflows, notably tighter approval requirements for outbound acquisitions. Since then, rumours have circulated about specific companies facing remittance difficulties. The People’s Bank of China and the State Administration of Foreign Exchange posted identical statements on their official Sina Weibo accounts on Tuesday stating that normal procedures were in effect. The statements reiterated China’s commitment to full renminbi convertibility under the current account and said that companies can conduct payments for goods, services, and dividend payments based on “authentic and valid documentation.”
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