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The seven-member Politburo Standing Committee in China
greeted the world in the Great Hall of the People on November 15, 2012 in
Beijing. What does the new leadership in China mean to EB-5 practice? Most
believe it is too early to tell. However, a few welcoming changes have already
of the Chinese Currency
The Chinese currency RMB has been revalued rapidly since
the convening of the 18th National Congress. As of November 17, 2012
the exchange rate of the Chinese Yuan to US dollars is 1USD/6.29RMB, the
highest level in the past eighteen years. That means the Chinese Yuan values
more against the US dollar. This in turn means that more investors from China
can afford to invest in the EB-5
Lifted in Foreign Currency Exchange
Another welcome change is in the foreign currency
exchange restriction. To date, the wiring of the $500,000 capital investment,
by investors out of the country, has been a complicated and time consuming
process. Now the restriction on currency exchange has been gradually lifted.
The Bank of China launched a pilot program in its
Guangzhou Branch to allow large amounts of foreign currency exchange and
remittance. That means EB-5 investors no longer need to go through the hassle
of utilizing ten currency exchange facilitators, instead the investors can wire
the $500,000 at once.
Though the regulation of Individual Foreign Currency Exchange
Administrative Measures is not yet officially amended. The law states the
maximum foreign currency remittance amount is $50,000 per year for Chinese
nationals. The pilot program simplifies the currency exchange process and
certainly is an incentive for Chinese nationals to invest.
The new Bank of China program provides adequate
flexibility to the investors. The EB-5 investor does not need to travel to Guangzhou
to open the account; the investor's representative can do so with the executed
Power of Attorney, though the investor herself must travel to Guangzhou to wire
the funds. This new change has proven feasible. Several Investor clients of
Mona Shah & Associates have already opened the account with Bank of China
Entry Office's Message to Investors
The Exit Entry Administration Office under the Ministry
of Public Security is the Chinese governmental agency that directly governs and
regulates EB-5 investment. The author believes that it is unlikely that the new
leadership will make radical policy adjustment regarding EB-5 investment. The
Exit-Entry Administrative Office's official website posted the warning to the
investors about the investment safety. It is said that the investors shall
conduct due diligence research before making any critical investment decision,
including inspecting whether the project is US government sponsored or
privately owned, whether the project business plan is credible and feasible,
whether the project is capable of returning the investment at the end of the
investment terms, whether the sufficient number of jobs will be created.
article represents the author's personal opinion. No legal advice is provided
in this article. Please consult the counsel for advice applicable to your
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Thank you for the informative article Yi Song. Can you please tell me where I can find more information regarding the pilot program a the Bank of China Guangzhou Branch, allowing for currency exchanges of up to $500,000? Thank you! Bryan@globalcitizenadvisors.com