1. The plan proposes to enhance the functionality of the RMB cross-border payment system and its global network coverage, encouraging more banks to join CIPS and continuously expanding the coverage of the CIPS network. 2. The plan also suggests optimizing the management model and business processes for Forex, improving the global fund management system for conglomerates, expanding the functionality and application scenarios of free trade accounts, and promoting financial institutions to enhance their digital service levels.
On April 21, the Financial Associated Press reported that the People's Bank of China, the Financial Regulatory Bureau, the State Administration of Foreign Exchange, and the Shanghai Municipal People's Government jointly issued the "Action Plan for Further Enhancing the Convenience of Cross-Border Financial Services in Shanghai as an International Financial Center." It pointed out that enhancing the functionality of the RMB cross-border payment system (CIPS) and its global network coverage is necessary. Cross-border clearing companies should strengthen coordination with financial institutions to improve service levels for "going global" enterprises. More banks should be encouraged to join CIPS, continually expanding its network coverage. Strengthening the construction of CIPS, improving system functionalities, researching and promoting the application of blockchain technology to provide safe and efficient settlement and clearing services for global trade, shipping and investment with RMB pricing.
Notice from the People's Bank of China, Financial Regulatory Bureau, State Administration of Foreign Exchange, Shanghai Municipal People's Government on Issuing the "Action Plan for Further Enhancing the Convenience of Cross-Border Financial Services in Shanghai as an International Financial Center."
In order to implement General Secretary ****'s spirit during his inspection in Shanghai and the Central Financial Work Conference, and better leverage the special role of Shanghai as an international financial center in serving the construction of a new development pattern, this plan is formulated to support various entities in participating in international competition and cooperation more safely, conveniently, and efficiently.
I. Overall Requirements
Guided by ****'s Thought on Socialism with Chinese Characteristics for a New Era, this initiative aims to deepen the opening-up of financial systems, strengthen financial support for "going global" enterprises and the Belt and Road Initiative, and form a financial system that is more compatible with an outward-oriented economy, enhancing the competitiveness and influence of Shanghai as an international financial center.
II. Main Content
(1) Improve the efficiency of cross-border settlements and facilitate global fund management for enterprises.
1. Optimize the management model and business processes of Forex. Support banks in implementing Forex business management regulations, enhance Forex business process optimization and system reconstruction, classify enterprises according to Forex compliance risk levels, and provide differentiated and convenient financial services. Support pilot banks like Bank Of China, China CITIC Bank Corporation, MINSHENG BANK, Citibank (China) Co., Ltd. to conduct business in Shanghai according to new regulations, and support more banks in Shanghai to participate. Establish a due diligence exemption appeal assessment mechanism for pilot banks' Forex business, support banks to appeal for suspected violations, and rely on the self-regulatory mechanism of the Forex market to conduct assessments to reasonably determine the banks' diligence and responsibility, improving the quality and efficiency of cross-border financial services.
2. Improve the global fund management system for conglomerates. Optimize the integrated currency pool management policy for both domestic and foreign currency, facilitating host enterprises to conduct centralized payment and collection for overseas member units. Enhance the cross-border fund allocation for the fully functional currency pool in the Shanghai Free Trade Pilot Zone. Encourage banks to gradually automate cross-border payment processing and extend service hours for key conglomerate cross-border currency pool operations, achieving real-time global fund allocation. Support the Pudong New Area in taking the lead in formulating favorable financial, talent, and other supportive policies for conglomerate financial centers, enhancing the economic level of conglomerate financial centers and encouraging other districts to replicate and improve supporting policies. Encourage conglomerates to establish currency pools in Shanghai for convenient and efficient onshore centralized management and use of global funds. Support banks in providing suitable currency pool services based on the scale of enterprise operations, business needs, and more.
3. Expand the functions and application scenarios of free trade accounts. Support banks in using information obtained from fulfilling the 'three anti' obligations for the authenticity verification of cross-border business, achieving no-delay payments with free trade accounts and overseas (cross-line). For recognized high-quality enterprises, process RMB fund settlements with domestic ordinary accounts (cross-line) based on business principles. Support banks in developing deposit products based on overseas institutions' free trade accounts, allowing non-resident foreign currency deposit rates to be priced based on international practices. Support banks that meet the requirements for providing settlement and payment services related to cross-border e-commerce based on electronic transaction information by innovating free trade account services to offer settlement services aligned with international standards for cross-border e-commerce. Optimize the dynamic update mechanism for the free trade account list.
4. Promote financial institutions to enhance their digital service levels. Encourage banks to conduct cross-border authentication and electronic identification for individuals and enterprises, steadily expanding the coverage of digital services in cross-border payment operations. Support financial institutions in utilizing blockchain technology to optimize the authenticity verification of clients' electronic documents and information, enhancing 'precise profiling' capabilities and improving the quality of cross-border financial services provided to 'going out' enterprises. Support banks in Shanghai participating in pilot digital renminbi operations actively in the multilateral central bank digital currency bridge project, exploring innovative special scenarios. Support the Forex trading center in providing Forex liquidity management and exchange services for the multilateral central bank digital currency bridge.
5. Enhance the functions of the Renminbi cross-border payment system (CIPS) and global network coverage. Strengthen collaboration between cross-border clearing companies and financial institutions to collectively enhance service levels for 'going out' enterprises. Promote more banks to join CIPS, continuously expanding the coverage of the CIPS network. Strengthen CIPS construction, improve system functions, study and promote the application of blockchain technology to provide safe and efficient settlement and clearing services for global trade, shipping, and investment involving Renminbi.
(2) Optimize exchange rate hedging services and improve the ability to manage and respond to Forex risks.
6. Develop diversified exchange rate hedging products and services. Support the Forex trading center in providing trading infrastructure services for RMB Forex trading within the Free Trade Pilot Zone and improve currency Forex trading services for countries in the Belt and Road Initiative Concept. Attract more enterprises to participate in the Forex trading center's 'bank-enterprise Forex trading service platform,' encouraging more banks to access the platform for direct quotes and facilitate various enterprises in conducting Forex business. Encourage banks to actively expand exchange rate hedging services for 'first-time' enterprises, promoting them to enhance awareness of exchange rate hedging and reduce hedging costs. Support banks in intensifying the development of exchange rate hedging products, enriching Renminbi options, including American-style options, European-style options, Asian options, and their combinations, continually increasing the variety of Renminbi Forex derivatives in the domestic market. Support the transformation and upgrading of bank outlets, encouraging qualified banks to establish foreign-related business specialty outlets based on regional and functional positioning, forming Forex professional service teams to offer a full range of foreign-related products, services, and currency exchange options. Strengthen business linkage between financing guarantee institutions and banks, collaborating with financing guarantee institutions like the Shanghai Financing Guarantee Center to jointly develop special guarantee products for exchange rate hedging, subsidized by the treasury to lower the Forex risk management costs for enterprises.
7. Promote the cross-border use of the Renminbi. Enhance the convenience and efficiency of cross-border use of the Renminbi, encouraging banks to optimize document review and strengthen data sharing under the premise of real compliance, improving the experience of 'going out' enterprises using Renminbi for investment, project construction, procurement, revenue recovery, and more throughout the entire chain. Encourage banks to build a subject classification management model oriented toward risk assessment, adopting various verification methods for ongoing assessments. Strengthen the promotion of the 'local currency priority' concept and publicize cross-border Renminbi policies, establishing a work evaluation mechanism for the cross-border use of Renminbi by state-owned enterprises in key sectors in Shanghai, encouraging 'going out' central enterprises and state-owned enterprises to give priority to using Renminbi for external payment settlements and driving various enterprises in the industry chain, supply chain, and innovation chain to use Renminbi. Study and design professional service plans aimed at increasing the proportion of Renminbi cross-border settlements in sectors like 'Silk Road E-commerce', high-end shipping, large complete sets of equipment exports, and overseas employee services. Promote the use of Renminbi in countries participating in the Belt and Road Initiative Concept and rely on Shanghai to build a trade and investment service system that promotes the global circulation of Renminbi.
(3) Strengthen financing services to assist enterprises in global investment and financing.
8. Gather cross-border syndicate loan centers and businesses. Under the premise of legal compliance, carry out pilot projects for cross-border transfer of syndicate loan shares at institutions recognized by the Financial Supervision Bureau, optimize foreign debt registration management and cross-border guarantee processes, and better meet the syndicate loan needs of domestic enterprises in the 'going out' process. When conditions are ripe, support willing and qualified banks to establish cross-border syndicate loan centers in Shanghai.
9. Pilot the trade refinancing business through the rediscount window. Support RMB cross-border trade financing in Shanghai through the rediscount window, encourage banks in Shanghai to expand cross-border trade credit issuance to reduce the RMB trade financing costs of enterprises, and promote import and export trade settled in RMB.
10. Expand domestic and overseas dual financing channels. Support qualified banks to explore providing non-resident acquisition loan services for 'going out' enterprises in the Shanghai Free Trade Zone following international practices, where loan amounts do not exceed 80% of the acquisition transaction price and loan terms do not exceed 10 years. Support banks to meet the financing needs of multinational companies' domestic and overseas subsidiaries in a manner that is controllable in terms of risk, based on reasonable commercial principles, through 'overseas direct lending,' 'internal guarantee for external loans,' 'external guarantee for internal loans,' etc. Support conglomerate financial companies in conducting 'external guarantee for internal loans' business, consolidating funds from overseas subsidiaries and providing financing support for them, facilitating the comprehensive financing of domestic and overseas subsidiaries of conglomerates while reducing financing costs. Improve the regulatory system for the development of 'Yulan Bonds,' further enrich added-value services such as agency interest payment and settlement, as well as handling of corporate actions.
11. Utilize blockchain technology to standardize the development of Supply Chain Finance. Leverage the role of key Industry Chain leaders, using blockchain and Big Data technologies to enhance the information on essential elements such as Orders, Logistics, and Warehousing, implement carbon footprint certification pilot projects, gradually construct a green low-carbon Supply Chain system, implement differentiated credit management for Supply Chain Finance, and improve the product system of Supply Chain Finance, standardize the development of receivables financing, Order financing, and warehouse and inventory pledge financing products, strengthen credit support for upstream and downstream enterprises of the Industry Chain. Support banks in Shanghai to better serve 'going out' enterprises in regions like the CNI Yangtze Index through Supply Chain Finance. Support Financial Institutions to rely on practical applications such as 'Aviation Trade Digital Chain,' to provide auxiliary verification for entities on the chain to conduct trade settlement, trade financing, and cross-border insurance (cargo insurance, ship insurance, etc.) through electronic document chain storage and cross-matching. Support the Shanghai Clearing House to enrich the participants and clearing products of the CSI Commodity Equity Index 'clearing connection,' promote the implementation of cross-border RMB clearing and settlement services, and support Financial Institutions to steadily expand the application scenarios of Supply Chain Finance services and extend to areas such as carbon emission rights.
12. Facilitate cross-border funding for financing leasing companies and others. Explore supporting financial leasing companies in sharing foreign debt quotas between parent and subsidiary companies. Facilitate the flow and use of foreign currency rent collected by financing leasing companies (including financial leasing companies) to allow for repayment of foreign currency debts, payment of overseas rents, and applicable uses such as paying for leased goods. Support financing leasing companies (including financial leasing companies) and subsidiaries in conducting external financing leasing business to serve 'going out' enterprises. Support overseas branches of Financial Institutions in actively providing financing support for the overseas sales of automotive groups.
(4) Strengthen Insurance protection and enhance risk management levels.
13. Increase insurance support for export enterprises. Enhance insurance protection for key export enterprises such as domestically manufactured commercial aircraft, new energy vehicles, and large complete sets of equipment, promote cooperation between insurance companies and reinsurance companies to establish an insurance community, and improve capability for special risk protection. Support insurance companies in providing insurance services for related fields, such as shipping, based on new advantages, new trends, and industry characteristics of China's exports, constantly optimizing insurance products. Support insurance companies in developing overseas clinical trial and high-end medical device liability insurance for Biomedical enterprises, providing support for insured enterprises. Strengthen insurance protection for accidental injury, medical, and illness aspects of cross-border personnel, and support insurance companies in developing insurance products for cross-border personnel. Encourage airports, ports, travel agencies, and other entities to facilitate the purchase of insurance products for cross-border personnel. The Shanghai Financial Regulatory Bureau guides relevant institutions to deepen the construction of the global inspection service network for the Belt and Road Initiative Concept, improve network functions, and expand coverage areas. Support the Shanghai Shipping Insurance Association in formulating insurance underwriting, claims, and recovery operation guidelines and standardized document templates regarding shipping insurance that comply with international practices and have global influence.
14. Enhance the service capability of export credit insurance policies. Support insurance institutions in optimizing and improving export credit insurance products and comprehensive service plans according to the enterprise's operational situation, project country, financing model, etc. Continuously optimize the claims conditions under the premise of meeting risk control standards, better providing risk protection for small and micro enterprises. Relying on the China (Shanghai) International Trade "Single Window," proactively offer convenient financial services that are "fully online, unsecured, and low-cost" for eligible small and micro enterprises. Upgrade the "Credit Insurance + Guarantee + Bank" financing model and optimize the credit insurance financing service list for Shanghai's foreign trade high-quality development to provide bulk proactive credit for cross-border e-commerce, service trade, and customs high-certified enterprises. Encourage banks to dynamically adjust country risk ratings and limits based on the "National Risk Analysis Report" published by policy export credit insurance institutions.
15. Provide high-quality reinsurance services. Support the establishment of specialized reinsurance business entities, reinsurance companies, and insurance brokerage firms in the Lingang New Area, steadily promote online transactions for cross-border reinsurance and domestic reinsurance business. Research and develop pilot feasibility for the issuance and trading of new risk transfer products around key areas such as the Belt and Road Initiative, aerospace, and green shipping to enhance global underwriting capacity for "going out" enterprises and projects. Strengthen central and local support for the Shanghai International Reinsurance Registration Trading Center, and improve regulatory and local fiscal support policies. Support the electronic circulation of reinsurance VAT invoices through the Shanghai International Reinsurance Registration Trading Center. Implement statistical release rules for cross-border reinsurance premiums, and conduct statistics and releases of premiums for cross-border reinsurance business carried out through the registration trading center according to the principle of newly added and non-repetitive counting.
(5) Improve comprehensive financial services and enhance global allocation capability.
16. Strengthen the capacity of important financial platforms to allocate global resources. High-level preparation for an international financial asset trading platform, transforming it into a significant functional platform for allocating global financial resources and facilitating deep participation of international investors in China's financial markets. Support Shanghai Gold Exchange and other entities in product authorization cooperation with overseas exchanges to expand the application of RMB benchmark prices in mainstream international markets. Explore the internationalization of specific varieties of delivery in Shanghai Gold Exchange and set up overseas receipt and storage.
17. Enhance the convenience level of global asset management. Support qualified domestic limited partners (QDLP) pilot enterprises in reasonably improving fundraising efficiency under regulatory conditions, allowing subscriptions for domestic low-risk (R2 and below) money market funds, cash management products, time deposits, and other short-term cash management products, as well as subscribing to overseas cash management products according to the characteristics of the offshore master fund. Support QDLP pilot enterprises in completing domestic fundraising and fund establishment, and exchange funds in batches for outbound funding according to the needs of the offshore master fund. Support the expansion of QDLP fundraising sources and explore raising both local and foreign currency funds.
18. Improve the functionality of various comprehensive service platforms. Enhance the "online + offline" comprehensive service capability and upgrade the Belt and Road Initiative comprehensive service center's level, iterating and upgrading the "Silk Road e-Qihang" mini-program and financial service functions, promoting seamless integration of online flow with offline professional services through resource consolidation between banks and enterprises. Promote offshore trading services such as Offshore Pass and Global Top E-Commerce to achieve cross-border sharing and exchange of data related to international trade documentation, port logistics, and other major trading areas.
III. Guarantee Measures
(1) Establish a promotion mechanism to jointly drive implementation.
The Shanghai Municipal Financial Office, the People's Bank of China Shanghai Headquarters, the Shanghai Financial Regulatory Bureau, the Shanghai Securities Regulatory Bureau, the State Administration of Foreign Exchange Shanghai Branch, the Shanghai Municipal Development and Reform Commission, the Shanghai Municipal Commerce Commission, the Shanghai Municipal Economic and Information Technology Commission, the Shanghai Municipal State-owned Assets Supervision and Administration Commission, and Financial Institutions have formed a special task force to provide a "financial service package" for enterprises going abroad, encouraging financial institutions in Shanghai to "go out".
(2) Strengthen publicity and promotion, and refine services.
Carry out the "Hundred Parks and Thousand Enterprises Financial Delivery" activity, utilizing various methods such as online releases and counter guidance to publicize policies. Relevant departments, key districts, and financial institutions will designate special personnel to organize and provide services. Establish an expert database, form a professional team, set up demonstration points, and provide integrated services for both domestic and foreign currencies, offshore and onshore, corporate and personal.
(3) Strengthen legal supply and create a good environment.
Improve mechanisms for financial legislation, regulation, and dispute resolution, and support Shanghai in exploring an offshore financial system. Emphasize the integrated development of finance with data, talent, technology, and other areas.
People's Bank of China.
Financial Regulatory Administration
State Administration of Foreign Exchange.
Shanghai Municipal Government
March 25, 2025.
