Leveraging Offshore RMB Transaction

Capital Injection / Increase in Mainland China

The use of offshore RMB enables RMB-denominated capital injection (increase) to a subsidiary in Mainland China.

Differences by currency

Advantages of offshore RMB transactions

  • ・A capital injection (increase) in RMB can fully hedge the potential Forex risk of the RMB appreciation during the idle time between the capital injection (increase) and the actual payment.
  • ・Evidence of the actual demand for the RMB FX transaction, which should be submitted in case of a capital injection (increase) in FCC, is not required.

Notes

  • ・In case of RMB-denominated capital injection (increase) , the head office bears the RMB Forex risk.
  • ・Additionally, regarding a capital injection (increase) to Mainland China, there are some regulations and requirements, which are different for in RMB and FCC.
Notes about Capital Injection / Increase to Mainland China

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