A pilot scheme for foreign exchange settlement in the Pingtan Comprehensive Pilot Zone (PCPZ) has received enthusiastic response, local news portal ptnet.cn reported on April 10.

Based on new rules, overseas-funded companies, including those from Taiwan, can settle their foreign exchange capital at will, helping them efficiently use the capital while avoiding the risk of exchange fluctuations, said the website.

The pilot policy was implemented in Pingtan on Aug 4 last year, and has seen the amount of forex settlement soar to 344.4 million US dollars as of March 31, according to the Pingtan branch of the People's Bank of China.

Zhongchuang Tech Co, a Taiwan enterprise, is one of many beneficiaries of the policy. It received $2 million capital from its parent company in Taiwan in November.

"Without the policy, the money would have been kept on our capital account and could only be settled in the event of actual need of funds operating," said Lin Guanjun, the company's financial chief.

The policy stipulates that the ratio of forex settlement for overseas-funded companies in Pingtan is 100 percent, meaning they can exchange all of their foreign capital into Renminbi.

"That is what ‘voluntary' is all about. We can proceed with the forex at any time and by any amount," said Lin.

More importantly, the enterprise can opt the best exchange time to make more profit from the action.

Lin revealed that Zhongchuang, after receiving the $2 million, waited about a week to convert the money when the dollar-RMB exchange rate hit the highest point, which led to some 80,000 yuan in extra profit.

"Previously, the foreign capital couldn't be converted unless there was actual need. The value of foreign capital could wane if the exchange rate slumped," said Lin.

After exchanging the $2 million into RMB, Zhongchuang put the money in a three-year deposit at a local bank to increase its value.