China relaxes rules guiding onshore FX accounts

BEIJING, July 13 (Reuters) - China on Monday made it easier for overseas-registered companies to manage their foreign exchange assets in the country, a move that will help Chinese firms do business abroad through their subsidiaries.

The State Administration of Foreign Exchange (SAFE) unveiled a new rule, to be effective on Aug. 1, to permit any company registered abroad to open an onshore foreign exchange account at a Chinese or foreign bank in China without regulatory approval.

The new rule is meant to boost banks' fee-based revenues and help Chinese firms that have already ventured abroad to manage their foreign exchange assets in the country, SAFE said.

It is also part of China's broader efforts to facilitate trade and investment so as to support economic growth and structural reform, the regulator said.

But, without SAFE's approval, account holders would not be allowed to withdraw deposits or convert the money into yuan, according to the new rule. (Reporting by Langi Chiang and Simon Rabinovitch; Editing by Neil Fullick)