The following is an interview is with Liu Yi，an official at Fujian Branch of the SAFE，on foreign exchange procedures for transactions under the capital account. 

01

Q: If a foreign-funded company wants to use its retained profits to make a capital increase and there is no use of funds brought in from abroad，would the company need to register this with the State Administration of Foreign Exchange?

A：This must be registered at a bank. According to the Circular on Further Simplifying and Improving Policies for Foreign Exchange Administration for Direct Investment (SAFE Document [2015] No.13)，a company can select a bank at the place of its incorporation to register the use of retained profits for a capital increase.