Investigation On Foreign Controlled Business (FCB) Foreign Debt Management Mode

External debts, double-edged sword, its good or bad supervisor and use will make an immediate effect on the processes development of China’s national economy. During the initial period of Reform and opening-up, external debts had make a great contribution in terms of utilizing foreign capital to make up for our economical gap, promoting product structure upgrades, rapidly expanding the export, promoting employment and so forth. Along with the economic development in our country and the successive steps of economic globalization, our foreign exchange reserves vigorously increase, the external debts scale of foreign-funded enterprises have been extending year after year. This paper, from the point of which, State Administration of Foreign Exchange (hereinafter to be referred as SAFE) supervision, in accordance with promoting the structural reform of foreign exchange management, implementing the ideas of PBC Vice-President, SAFE Director Yigang, "Five transition", as job objectives, illustrates the feasibility study on the status of foreign debt management model and innovation in foreign-funded enterprises, with the purpose of reducing time taken by executive assessment, improving supervision efficiency; simplifying working procedure in foreign-funded enterprises, cutting down business cost, stimulating the better enterprise development; promoting the SAFE process of RMB capital account convertibility; converting SAFE from on-spot business operations to off-site supervision. Which, therefore have theoretical and practical significance on the study of existing management innovation. This paper is divided into four parts:The first part, general instruction. The main including is the definition of foreign loans at home and abroad, the nature, classification and characteristics, and briefly elaborates the western theory about external debt and historical evolution of Chinese external debt research.The second part, analysis of Chinese reforming exchange management system, fundamental state of Chinese external debt and present situation of external debt management model in foreign-funded enterprises. Introducing the progress of Chinese reforming exchange management system, capital account convertibility, Chinese external debt situation, and take State Administration of Foreign Exchange of Hainan Branch (hereinafter referred to Hainan Branch of SAFE) as an example, analysing the external debt management model of overseas-funded enterprises at present in China. The third part, the feasibility analysis of external debt innovation management model in foreign-funded enterprises, which mainly analyse from the aspect of the current national policy; maneuverability and risk controllability of external debt innovation management model in foreign-funded enterprises.The fourth part, the assumption of external debt innovation management model in foreign-funded enterprises, which invovles the preparation of external debt innovation management model in foreign-funded enterprises, including account of institution building, banking authorization, the business operating system, the external debt data acquisition system, operating procedures and other aspects. Proposing a theory of constructing off-site supervision system, in order to achieve the concept of full aperture supervision.