China's central bank and foreign exchange regulator have issued a unified framework to streamline cross-border capital management for domestic companies listed overseas, marking a significant step in reducing administrative burdens and enhancing operational flexibility for internationally listed Chinese firms.

On December 26, 2025, the People's Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) jointly released the Notice on Issues Concerning Capital Management for Overseas Listing of Domestic Enterprises. The policy aligns capital account management with broader financial opening objectives and aims to facilitate more efficient use of global financing by Chinese enterprises.

The Notice introduces several key changes:

1. Currency Unification: Proceeds from overseas listings, share reductions, or transfers may now be repatriated in either foreign currency or RMB. Dividends paid to domestic shareholders under H-share "full circulation" programs must be distributed in RMB domestically.

2. Enhanced Autonomy: Companies may freely convert repatriated foreign-currency funds into RMB for domestic use and independently select onshore channels for managing exchange rate risks.

3. Process Simplification: Banks are empowered to handle registration formalities directly for clients, with relaxed time limits for registrations related to IPOs, follow-on offerings, and share sales.

4. Clarified Fund Management: While raised funds and proceeds from share sales are generally required to be repatriated, the rules allow qualified firms to retain and use capital overseas under specified conditions. Unused funds from share purchase plans or incomplete transactions must be returned promptly.

For international investors and global financial institutions, the updated framework signals a move toward greater predictability and operational ease. The relaxation of currency controls and registration timelines reduces friction in the capital lifecycle of overseas-listed Chinese companies. This may encourage more efficient capital deployment and risk management, potentially deepening the liquidity and attractiveness of Chinese equities in global markets.

By clarifying repatriation rules and permitting conditional retention of funds abroad, PBOC and SAFE are balancing control with flexibility. The changes are poised to support Chinese firms in optimizing their global treasury operations while providing clearer guidelines for banks and service providers navigating cross-border capital flows.