Shanghai Head Office of the People's Bank of China released on January 6, 2021 the Circular about Scrapping Special RMB Deposit Account for Foreign Direct Investment at the Lingang New Area of Shanghai Free Trade Zone.
According to the circular, foreign-funded enterprises registered in the Lingang New Area no longer have to open special RMB capital accounts when they make capital contributions in the Chinese currency. Their settlement bank can directly handle RMB capital account services for enterprises, and the use of funds must comply with relevant documents of the People's Bank of China. After the RMB capital account is canceled, the settlement bank will continue to submit information to the RMB cross-border payment and receipt management information system (RCPMIS).