Foreign Currency Account Types

There is a regulatory framework in place that determines the number and type of accounts that can be opened, with accounts generally being allocated to specific purposes. The table below shows what type of accounts can be opened for what circumstances (please note that this table is for information purposes only, and should not be held to be authoritative: regulations may be subject to change without prior notice).

Foreign currency account types	Inflows	Outflows	Comments
Capital account	To receive capital injections and capital increases	Payments for current items and approved capital-items	In principal only one account can be opened with a bank located in the same region as the company
Settlement account	Collections for current item foreign currency	As above
Foreign debt special account	To receive loan proceeds from overseas	As specified in the loan agreement, but can’t be used to repay RMB loans	Foreign Debt registration required
Foreign debt special loan repayment account	Transferred from other foreign currency accounts, or exchanged from RMB	Repayment of the foreign currency loan principal and interest	Not necessary, as foreign debt can be repaid through a foreign debt special account
Foreign currency loan account (including loan account and repayment account)	To receive the loan proceeds from onshore foreign currency loans by banks or through Entrusted Loans	To repay the principal and interest of onshore foreign currency loans from banks or though Entrusted Loans	Exchange to RMB not allowed
Temporary capital account	To temporarily receive funds related to direct China investment	Payment of expenses associated with direct investment in China	One account only