To thoroughly implement the guidelines of General Secretary Xi Jinping’s important speech during his visit to Shanghai and of the Central Financial Work Conference, deepen institutional opening-up in the financial sector, and strengthen financial support for Chinese enterprises “going global” and the Belt and Road Initiative, recently, the People’s Bank of China (PBOC), the National Financial Regulatory Administration (NFRA), the State Administration of Foreign Exchange (SAFE), and the Shanghai Municipal People’s Government jointly issued the Action Plan for Further Facilitating Cross-Border Financial Services in Shanghai International Financial Center (hereinafter referred to as the Action Plan).
The Action Plan focuses on further leveraging the unique role of the Shanghai International Financial Center in serving the building of a new development paradigm, supporting market participants of all types in engaging in international competition and cooperation in a safer, more convenient, and more efficient manner. The Action Plan outlines 18 key measures across five areas: improving the efficiency of cross-border settlements, optimizing the services of exchange rate risk hedging, enhancing financing services, strengthening insurance coverage, and upgrading comprehensive financial services. These measures are of great significance for accelerating the development of Shanghai as an international financial center.
Moving forward, the PBOC and the Shanghai Municipal People’s Government will collaborate with relevant authorities to implement the measures outlined in the Action Plan. Efforts will be made to further facilitate cross-border investment and financing, continuously enhance the competitiveness and global influence of the Shanghai International Financial Center, and promote high-quality economic development and high-level opening-up.
Annex
People’s Bank of China, National Financial Regulatory Administration, State Administration of Foreign Exchange, Shanghai Municipal People’s Government
Notice on Issuing the Action Plan for Further Facilitating Cross-Border Financial Services in Shanghai International Financial Center
This Action Plan is developed to implement the guiding opinions of General Secretary Xi Jinping during his visit to Shanghai and of the Central Financial Work Conference, further tap into the unique role of the Shanghai International Financial Center in serving China’s new development paradigm, and support market participants of all types to engage in international competition and cooperation in a safer and more expedient and efficient manner.
I. General Requirements
To build a financial system more aligned with an export-oriented economy and enhance the competitiveness and influence of Shanghai as an international financial center in line with the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, by advancing the institutional opening-up of the financial sector and increasing the financial support to enterprises that are expanding globally and to the Belt and Road Initiative.
II. Main Content
(I) Improving Cross-Border Settlement Efficiency to Facilitate Global Treasury Management for Corporates
1. Optimize how foreign exchange services are managed and the related processes. We support banks in implementing the measures governing the offering of foreign exchange services, optimize the service procedures and reengineer their IT systems, and classify enterprises according to their foreign exchange compliance risks and, based on this classification, provide differentiated and streamlined financial services. We support the Shanghai branches of the pilot program banks—Bank of China, China CITIC Bank, China Minsheng Bank, and Citibank (China) Co., Ltd.—in offering services under the new rules, and encourage more Shanghai-based banks to participate in the program. We will establish the procedures for statement submission and review in relation to exemption from liabilities for pilot program banks that have exercised due diligence, which will support banks in submitting statements in regard to suspected violations and enable us to conduct reviews through the China FX Market Self-Disciplinary Mechanism, thereby making appropriate determinations on whether banks have exercised due diligence and ultimately improving the quality and efficiency of cross-border financial services.
2. Improve the global treasury management systems of corporate groups. We will optimize the policies governing integrated RMB and foreign currency cash pooling to facilitate centralized payments and receipts by the pool header on behalf of the overseas member enterprises. Cross-border funds transfers by full-featured cash pools in the China (Shanghai) Pilot Free Trade Zone will also be optimized. We encourage banks to gradually achieve the automated processing of cross-border payments, extend service hours for such services as cross-border cash pooling by key corporate groups, and offer real-time worldwide funds transfers. We will support the Pudong New Area in taking the lead in developing financial, talent-related, and other supportive policies that encourage corporate groups to set up treasury centers, with a view to building a stronger headquarters economy based on those centers, and encourage other regions to emulate, promote, and refine these supportive policies. We encourage corporate groups to establish cash pools in Shanghai to achieve the expedient, efficient, and centralized onshore management of their global cash funds. Lastly, we will support banks in providing cash pooling services that are aligned with the business scale and needs of the enterprises they serve.
3. Expand the functions and applications of free trade accounts. We will support banks in reviewing the authenticity of cross-border transactions using the information they obtain from anti-money laundering, counter-terrorist financing, and anti-tax evasion programs, to offer instant payments and receipts between FT accounts and overseas accounts, and, to facilitate RMB settlement between FT accounts and regular domestic accounts for enterprises recognized as exemplary businesses. We will support banks in developing deposit products for the FT accounts of overseas organizations, and allow market-based pricing for the interest rate on foreign-currency deposits of non-residents, in line with international practices. For banks that are qualified to provide cross-border e-commerce companies with foreign currency purchase and sale services as well as payment and receipt services based on digital transaction information, we will encourage them to develop new applications of FT accounts to provide internationally aligned settlement services to cross-border e-commerce companies. We will also optimize dynamic updating mechanism for the FT account list.
4. Encourage financial institutions to enhance their digital services. We encourage banks to conduct the cross-border authentication and electronic verification of the digital identity of individuals and enterprises, and to steadily expand the coverage of their digital services related to cross-border payments and receipts. We will support financial institutions in optimizing the authenticity check of customers’ electronic documents, information, and materials by leveraging blockchain and other technologies, improve their ability to create accurate customer profiles, and enhance the quality of their cross-border financial services for enterprises that are expanding globally. We will encourage Shanghai-based banks participating in the e-CNY pilot program to engage in mBridge and explore innovative and distinctive application scenarios. We will also support CFETS in providing mBridge with foreign-currency liquidity management and exchange services.
5. Improve the functionality and global coverage of the RMB Cross-Border Interbank Payment System (CIPS). CIPS Co.,Ltd. will enhance collaboration with financial institutions to jointly improve the standard of services offered to enterprises that are expanding globally. We will encourage more banks to join CIPS to expand its network coverage. We will also strengthen CIPS by improving its functionalities and promoting the use of blockchains, so as to provide secure and efficient clearing and settlement services for RMB-denominated international trade, shipping, investment, and financing activities.
(II) Optimizing Exchange Rate Hedging Services and Enhancing the Capacity to Manage and Respond to the Foreign Exchange Risks
6. Develop diversified exchange rate hedging products and services. We will support CFETS in providing trading facilities for foreign exchange from and into RMB within the pilot free-trade zones, and strengthening foreign exchange services in relation to the currencies of Belt and Road countries. We will encourage more enterprises to make use of the CFETS ONE platform, and more banks to directly offer quotes through the platform, thereby facilitating foreign exchange transactions for various enterprises. We also encourage banks to proactively develop corporates as first-time users of exchange rate hedging services, to raise their risk awareness and lower the associated costs. We will support banks in investing more in the development of exchange rate hedging products, expanding the availability of plain vanilla American-style, European-style, and Asian-style options and option combinations for RMB/foreign currency pairs, and diversifying the range of RMB foreign exchange derivatives for the domestic market. We will also support the transformation and upgrading of bank outlets and, encourage capable banks to set up outlets that offer international banking services in line with their regional and functional positioning, to form dedicated foreign exchange service teams, and to provide a full range of foreign-related products, services, and exchangeable currencies. We will strengthen coordination between financing guarantee institutions and banks. Municipal and district-level financing guarantee institutions, such as the Shanghai Administration Center of Policy Financing Guarantee Funds for SMEs, will work with banks to jointly develop exchange rate hedging-specific guarantee products, with the guarantee fees subsidized by public finance to help lower enterprises’ costs of managing the foreign currency risks.
7. Promote the cross-border use of RMB. We will improve the ease and efficiency of making and receiving cross-border payments with RMB, and encourage banks to optimize their documentation review process and bolster data sharing if the authenticity of documentations and compliance can be ensured, with a view to improving the experience of the “going global” enterprises in using RMB across all project stages including investing, financing, project undertaking, procurement, and investment payback. We encourage banks to establish risk assessment-based models for classifying and managing business entities and to implement a multitude of real-time and post-event checks. We will promote RMB as the preferred currency and raise awareness of our policies on cross-border RMB, establish a mechanism for evaluating the cross-border use of RMB by Shanghai-based state-owned enterprises in the key sectors, and encourage central and other state-owned enterprises with international operations to preferentially use RMB in outbound payments and settlement, and to in turn mobilize enterprises in their industries, supply chains, and innovation value chains to use RMB also. We will develop and promote professional service solutions that increase the proportion of RMB-based cross-border settlement in the Silk Road e-commerce, high-end shipping, export of large-scale complete sets of equipment, and overseas employee service industries. We will also promote the use of RMB in Belt and Road countries, and leverage Shanghai as a hub for building a trade and investment service system that encourages the worldwide circulation of RMB.
(III) Bolstering Financing Services to Help Enterprises Invest and Finance Globally
8. Attract cross-border syndicated loan centers and business. For institutions recognized by the National Financial Regulatory Administration and on condition of legal and regulatory compliance, the percentage share of these institutions in a syndicated loan will be transferrable to cross-border parties on a trial basis, complemented by optimized external debt registration and cross-border guarantee processes, to better meet the needs of domestic enterprises for syndicated loans as they expand globally. When conditions permit, we will support banks that are willing and able to establish cross-border syndicated loan centers in Shanghai.
9. Offer trade refinancing services through the central bank discount window on a trial basis. We will support RMB-based cross-border trade financing in Shanghai through the central bank discount window on a trial basis, and encourage Shanghai-based banks to offer more credit loans to cross-border trade deals to lower the financing cost of RMB-based trades, in order to encourage import and export denominated and settled in RMB.
10. Broaden the inbound and outbound financing channels. For banks with the necessary conditions, we will support them to explore offering non-resident M&A loans, in the China (Shanghai) Pilot Free Trade Zone and in line with international practices, to enterprises that are expanding globally, provided the loan amount does not exceed 80 percent of the M&A transaction price and the loan term does not exceed 10 years. On condition that the risk is kept at manageable levels, we will also support banks to meet the financing needs of the domestic and overseas member enterprises of multinational corporations through direct overseas loans, Neibaowaidai (security provided by a domestic guarantor for external debts), and Waibaoneidai (security provided by an overseas guarantor for domestic debts) in a commercially reasonable manner. We will support the finance company of a corporate group to engage in waibaoneidai businesses and aggregate the funds of its overseas member enterprises and provide them with financing support, so as to facilitate and coordinate the financing activities and lower the financing cost of its domestic and overseas member enterprises. We will improve the institutional and supervisory rules for Yulan bond and expand the range of value-added services such as interest payment and principal repayment through third-party service providers and handling of corporate behaviors.
11. Develop supply chain finance in a regulated way by leveraging blockchain technology. We will promote digitizing information from key supply chain stages, such as orders, logistics, and warehousing information, empowered by blockchain and big data technologies, leveraging the role of leading enterprises in key industries. Through these efforts, we will launch the pilot program on carbon footprint certification, establish a green, low-carbon supply chain system, implement differentiated credit management in supply chain finance, improve the suite of supply chain finance products, ensure the growth of such financing products as accounts receivable and purchase order financing, and warehouse receipt and inventory collateralization under effective regulation, and increase the credit support for enterprises in the upstream and downstream sectors of an industry. We will support banks in Shanghai to better serve the “going global” enterprises in the Yangtze River Delta and beyond through supply chain finance. We will also support financial institutions to take advantage of existing applications such as TradeChain and perform blockchain-based preservation and cross-matching of electronic documentations, in order to help on-chain business entities to verify information in relation to trade settlement, trade financing, and cross-border insurance (e.g., cargo and vessel insurance). We will support the Shanghai Clearing House to expand the participant base and clearing products of the Commodity Clearing Net (CCNet), accelerate the launch of cross-border RMB clearing and settlement services, and support financial institutions to steadily broaden the application of supply chain finance services and expand them to areas such as emissions trading.
12. Facilitate cross-border fund flow of financing lease companies. We will explore ways that allow financial lease companies to operate under a shared offshore debt quota between parent and subsidiary entities. We will make it easier for financing lease companies (including those that are financial institutions) to use the foreign-currency lease proceeds collected in the Mainland for compliant purposes, such as servicing foreign-currency debts, conducting overseas lease, and making overseas payment for lease assets. We will support financing lease companies (including those that are financial institutions) and their subsidiaries to engage in offshore financing lease businesses to serve enterprises that are expanding globally. We will also support the overseas branches of financial institutions to proactively provide financing to automobile groups to strengthen their overseas sales.
(IV) Improving Insurance and Risk Management
13. Improve insurance coverage for exporters. We will enhance insurance protection for the key exporters such as the exporters of domestically produced commercial aircrafts, new energy vehicles, and major equipment. By fostering closer collaboration between insurers and reinsurers, we aim to develop insurance pools better equipped to underwrite special risks. We will support insurers to refine coverage for the shipping and related industries, and improve their products on an ongoing basis in view of the evolving comparative advantage and trends of China’s export market and the characteristics of those industries. Furthermore, we will support both insurers in developing liability insurance policies for the overseas clinical trials and advanced medical equipment of biomedical companies, and the policyholders themselves. Cross-border travelers will receive better insurance coverage of accidents, medical treatment, and illnesses, with insurers encouraged to design tailored products for this population group. We also encourage airports, ports, and travel agencies to make purchasing policies easier for them. The NFRA Shanghai Office is to advise the relevant organizations on strengthening the global surveyor service network for the Belt and Road Initiative, expanding its geographic reach and functionality.. We will support the Shanghai Institute of Marine Insurance to develop guidance and template documents for marine insurance underwriting, claims settlement, and post-subrogation recovery that are aligned with international conventions and have a global impact.
14. Raise the effectiveness of export credit insurance policies. We will support insurers to optimize their export credit insurance products and integrated service solutions in view of enterprise performance, project country and financing model. While keeping risk control indicators within the required range, we aim to optimize the claims filing requirements to provide more effective risk coverage for micro- and small-sized businesses. Leveraging the China (Shanghai) International Trade Single Window, we will actively provide expedient financial services—fully online, collateral-free, and affordable—to qualified micro, small, and medium enterprises. We will upgrade the “credit insurance + financing guarantee + bank” financing model, optimize the Tripartite Collaboration List for Promoting the High-Quality Development of Shanghai’s Export Market through Export Credit Insurance Financing, and actively offer bulk credit approval to cross-border e-commerce, trade in services, and Advanced Certified Enterprises recognized by the customs. We encourage banks to promptly update their country risk ratings and quotas based on The Handbook of Country Risk published by the policy export and credit insurers.
15. Provide premier reinsurance services. We will support the establishment of the corporate entity or branches of insurers, reinsurers, and insurance brokers in the Lin-gang Special Area with specialization in reinsurance, and steadily bring cross-border reinsurance and domestic reinsurance services online. For key areas including the Belt and Road Initiative, aviation and aerospace, and green shipping, we will study the feasibility of a pilot program for the launch and trading of novel risk transfer products, to improve global risk coverage for domestic enterprises and projects that have gone international. We will strengthen central and local governments’ support for the Shanghai International Reinsurance Exchange (SIRE) and improve regulation, local government funding, and other supporting policies. We will support the electronic flow of VAT invoices through SIRE for reinsurance transactions. We will also implement the rule for the statistical compilation and the publication of cross-border reinsurance premium rates, such that the amount of premiums assumed from cross-border reinsurance transactions conducted through SIRE will be classified as domestic new premiums and not be double-counted, and will be published accordingly.
(V) Enhancing Integrated Financial Services and Global Allocation Capabilities
16. Strengthen global resource allocation functions of key financial platforms. We will establish an International Financial Assets Trading Platform with high-standard planning, positioning it as a pivotal functional platform for allocating global financial resources and facilitating international investors' deeper participation in China's financial markets.We will support the Shanghai Gold Exchange (SGE) and similar institutions to develop product licensing cooperation with overseas exchanges, expanding the application of RMB benchmark prices in major international markets. Additionally, we will explore international delivery mechanisms for designated SGE products through establishing overseas delivery vaults.
17. Improve Convenience in Global Asset Management. We will support Qualified Domestic Limited Partner (QDLP) pilot enterprises to reasonably elevate fund utilization efficiency in compliance with regulations, permitting investments in mainland low risk levels (R2 and below) short-term cash management products, such as money market fund shares, cash-oriented wealth management products, and time deposits, as well as overseas cash management products based on the redemption terms ofmaster funds. We will enable QDLP pilot enterprises, after they complete domestic fundraising and fund establishment, to transfer the proceeds out of the mainland in batches as needed by the overseas master funds. Furthermore, we will broaden QDLP fundraising channels by exploring RMB and foreign currency capital mobilization.
18. Enhance the functions of integrated service platforms. We will upgrade our capabilities to provide integrated online and offline services, empower the Belt and Road Comprehensive Service Center, introduce iterative upgrades to the “Silk Road e-Journey” mini-program and its financial services features, promote resource integration and alignment between banks and enterprises, to achieve the seamless convergence of online intake with offline matching of professional services. We will facilitate offshore trade service platforms such as TradeNexus and Cross-Border Express (Kuajingtong) in achieving cross-border sharing and exchange of international trade documents, port logistical information, and related data with key trading regions.
III. Implementation Safeguards
(I) Establishing Progress Trackers to Jointly Ensure Policy Implementation
The Shanghai Municipal Party Committee Financial Affairs Office, PBOC Shanghai Head Office, NFRA Shanghai Office, CSRC Shanghai Office, SAFE Shanghai Branch, Shanghai Municipal Development & Reform Commission, Shanghai Municipal Commission of Commerce, Shanghai Municipal Economy and Information Technology Commission, Shanghai Municipal State-Owned Assets Supervision and Administration Commission, and financial institutions are to create a task force to provide a package of financial services to the “going global” enterprises and encourage Shanghai-based financial institutions to expand overseas operations.
(II) Strengthening Policy Outreach and Refining Service Delivery
We will conduct “Financial Outreach to Hundred Parks & Thousand Enterprises” initiatives, utilizing both online dissemination and in-person consultations for policy promotion. Relevant departments, key district governments, and financial institutions shall designate specific personnel to ensure effective service delivery. We will establish expert pools, specialized teams, and demonstration service centers to provide integrated services including domestic/foreign currencies, onshore/offshore transactions, businesses/individuals, and so forth.
(III) Enhancing the Legal Framework and Optimizing the Business Environment
We will improve mechanisms covering financial legislation, regulation, dispute resolution, and related mechanisms, while supporting Shanghai's exploration of developing offshore financial systems. Emphasis will be placed on fostering integrated development across finance, data, talent, and technology.
People’s Bank of China
National Financial Regulatory Administration
State Administration of Foreign Exchange
Shanghai Municipal People’s Government
25 March, 2025
