The mainland has eased rules to facilitate foreign direct investment in an effort to boost the ebbing capital inflow.
Investment coming into the country has fallen in nine of the 10 months this year, official data showed this week, while outward investment continues to surge.
The State Administration of Foreign Exchange yesterday said that from December 17, it would cancel the complex review procedures related to capital flows and currency exchange quotas of foreign enterprises.
These companies will now only need to register their information with relevant departments, according to a statement posted on the regulator's website.
"The simplified rules will encourage more foreign direct investment," said Standard Chartered Bank economist Li Wei. "However, it's yet to be seen whether the weakening FDI trend will reverse in the short term because it hinges more on the domestic and overseas economic situation."
Limitations on the use of foreign exchange funds would be eased too, the SAFE said, including allowing foreign-invested enterprises to extend loans to their overseas parents.