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Shanghai releases cross-border financial action plan

An action plan to further improve the facilitation of cross-border financial services provided in Shanghai was released on Monday, aiming to step up the support for Chinese companies’ outbound reach and better address the country’s Belt and Road Initiative.

Made up of 18 detailed policies, the action plan will support various market entities to participate in international cooperation and competition more efficiently by improving the services concerning cross-border settlement, exchange rate hedging, financing, insurance and comprehensive financial services.

Specifically, the free trade account function and application scenarios should be further expanded. China’s Cross-border Interbank Payment System should see its system upgraded, connecting to more banks. Blockchain technology should be better used to provide safe and highly efficient settlement and clearance services regarding yuan-denominated global trade, shipping, investment and financing.

The re-discount service windows may conduct pilot programs for trade refinancing businesses. Financial institutions’ overseas branches are supported in providing financing for carmakers’ overseas sales distribution channels. The cross-border flow of financial lease companies should be further facilitated, according to the new action plan.

Detailed policies:

1.Optimize the management and business expansion procedures for foreign exchange businesses

2.Complete the companies’ global capital management system

3.Expand the function and application scenarios of FT accounts

4.Improve financial institutions’ digital services

5.Improve the function of CIPS and expand its global coverage

6.Develop diversified products and services for foreign exchange hedging

7.Promote the cross-border use of the Renminbi

8.Gather cross-border syndicated loan centers and businesses

9.Conduct a pilot program of providing refinancing at the re-discount window

10.Explore two-way financing channels in both domestic and overseas markets

11.Regulate the development of supply chain finance by using blockchain technology

12.Facilitate the cross-border capital flow of financial leasing companies

13.Step up insurance support for export companies

14.Enhance the service capacity of export credit insurance policies

15.Provide high-quality reinsurance services

16.Improve the global asset allocation capabilities of key financial platforms

17.Improve the facilitation level of global asset management

18.Improve the function of various comprehensive service platforms

Tanks to chinadaily.com.cn

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