Notice of the People's Bank of China, National Administration of Financial Regulation, State Administration of Foreign Exchange, and People's Government of Shanghai Municipality

On Printing and Distributing the "Action Plan for Further Improving the Facilitation of Cross-Border Financial Services in the Shanghai International Financial Center"

To implement the spirit of General Secretary Xi Jinping's inspection tour of Shanghai and the Central Financial Work Conference, better give play to the special role of the Shanghai International Financial Center in serving the construction of a new development pattern, and support various entities to participate in international competition and cooperation in a safer, more convenient and efficient manner, this Plan is formulated.
I. General Requirements
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will deepen institutional opening-up in the financial sector, strengthen the ability of finance to support enterprises "going global" and the construction of the Belt and Road, form a financial system more adapted to the export-oriented economy, and enhance the competitiveness and influence of the Shanghai International Financial Center.

II. Key Contents
(I) Improve Cross-Border Settlement Efficiency and Facilitate Enterprises' Global Capital Management
Optimize foreign exchange business management models and operation processes. Support banks in implementing foreign exchange operation management measures, optimizing foreign exchange business processes and reconstructing systems, classifying enterprises' foreign exchange compliance risk levels, and providing differentiated and convenient financial services. Support pilot banks such as Bank of China, China CITIC Bank, China Minsheng Bank, and Citibank (China) Co., Ltd. (Shanghai branches) to carry out business in accordance with new regulations, and encourage more banks in Shanghai to participate. Establish a mechanism for pilot banks to appeal and review due diligence exemptions in foreign exchange business, support banks to appeal against suspected violations, conduct reviews relying on the foreign exchange market self-regulatory mechanism, reasonably determine whether banks have "fulfilled their duties", and improve the quality and efficiency of cross-border financial services.
Improve the global capital management system of enterprise groups. Optimize the integrated domestic and foreign currency capital pool management policies to facilitate leading enterprises to conduct centralized fund collection and payment business on behalf of overseas member units. Optimize and improve cross-border fund transfer of full-function capital pools in the China (Shanghai) Pilot Free Trade Zone. Encourage banks to gradually realize automated processing of cross-border fund payments, extend service hours for businesses such as cross-border capital pools of key enterprise groups, and achieve real-time global fund transfer. Support Pudong New Area to take the lead in formulating fiscal, talent and other supporting policies conducive to the agglomeration of enterprise group treasury centers, enhance the level of headquarters economy such as enterprise group treasury centers, and encourage other districts to replicate, promote and improve supporting policies. Encourage enterprise groups to set up capital pools in Shanghai to realize convenient and efficient onshore centralized management and use of global funds. Support banks to provide suitable capital pool services based on enterprises' operation scale and business needs.
Expand the functions and application scenarios of free trade accounts. Support banks to use information obtained from fulfilling anti-money laundering, counter-terrorist financing and counter-proliferation financing (AML/CFT/CPF) obligations for authenticity verification of cross-border businesses, realize real-time payment and collection between free trade accounts and overseas accounts (crossing the "first line"), and handle RMB fund settlement between free trade accounts and domestic ordinary accounts (crossing the "second line") for recognized high-quality enterprises in accordance with operation principles. Support banks to develop deposit products based on free trade accounts of overseas institutions, and allow market-oriented pricing of foreign currency deposit interest rates for non-residents with reference to international practices. Support banks that meet the requirements for providing foreign exchange settlement, sales and fund collection/payment services for cross-border e-commerce based on electronic transaction information to provide international standards-compliant settlement services for cross-border e-commerce through innovative free trade account services. Optimize the dynamic update mechanism of the free trade account list.
Promote financial institutions to improve digital service levels. Encourage banks to carry out cross-border authentication of digital identities and electronic identification for individuals and enterprises, and steadily expand the coverage of digital services in cross-border payment and collection businesses. Support financial institutions to use technologies such as blockchain to optimize the authenticity verification of customers' electronic documents and electronic information, enhance the ability of "precision profiling", and improve the quality of cross-border financial services for enterprises "going global". Support pilot digital RMB operating banks in Shanghai to actively participate in the Multi-Central Bank Digital Currency Bridge project and explore innovative characteristic scenarios. Support the China Foreign Exchange Trade System (CFETS) to provide foreign exchange liquidity management and exchange services for the Multi-Central Bank Digital Currency Bridge.
Upgrade the functions and global network coverage of the Cross-Border Interbank Payment System (CIPS). Cross-Border Clearing Co., Ltd. will strengthen coordination and linkage with financial institutions to jointly improve service levels for enterprises "going global". Promote more banks to join CIPS and continuously expand the network coverage of CIPS. Strengthen the construction of CIPS, improve system functions, study and promote the application of blockchain technology, and provide safe and efficient settlement and clearing services for global trade, shipping, investment and financing denominated in RMB.
(II) Optimize Exchange Rate Risk Hedging Services and Improve Foreign Exchange Risk Management and Response Capabilities
Develop diversified exchange rate risk hedging products and services. Support CFETS to provide trading facility services for RMB foreign exchange transactions in the Pilot Free Trade Zone and improve foreign exchange trading services for currencies of Belt and Road co-building countries. Attract more enterprises to participate in CFETS' "Bank-Enterprise Foreign Exchange Trading Service Platform", encourage more banks to connect to the platform for direct quotation, and facilitate various enterprises to carry out foreign exchange businesses. Encourage banks to actively expand "first-time users" of exchange rate risk hedging services, promote enterprises to enhance exchange rate risk hedging awareness, and reduce enterprises' exchange rate risk hedging costs. Support banks to increase the development of exchange rate risk hedging products, enrich RMB foreign exchange vanilla American options, European options, Asian options and their combination products, and continuously increase the types of RMB foreign exchange derivative products in the domestic market. Support the transformation and upgrading of bank branches, encourage qualified banks to set up characteristic foreign-related business branches based on regional and functional positioning, form professional foreign exchange service teams, and provide full-range foreign-related products, services and exchange currencies. Strengthen the linkage between financing guarantee institutions and bank businesses. Shanghai Municipal Financing Guarantee Center and other municipal and district government financing guarantee institutions will jointly develop special exchange rate risk hedging guarantee products with banks, with financial subsidies for guarantee fees to reduce enterprises' foreign exchange risk management costs.
Promote the cross-border use of RMB. Improve the convenience and payment/collection efficiency of cross-border RMB use. Encourage banks to optimize document verification, strengthen data sharing, and enhance the experience of enterprises "going global" in using RMB for investment, financing, project construction, procurement, and profit repatriation throughout the whole chain on the premise of authenticity and compliance. Encourage banks to build a subject classification management model oriented by risk assessment and adopt various in-process and post-event verification methods. Strengthen the promotion of the "RMB priority" concept and cross-border RMB policies, establish an evaluation mechanism for the cross-border use of RMB by state-owned enterprises in key fields in Shanghai, encourage central enterprises and state-owned enterprises "going global" to give priority to RMB for foreign payment and settlement, and drive various enterprises in the industrial chain, supply chain and innovation chain to use RMB. Study and design professional service plans to increase the proportion of cross-border RMB settlement in fields such as "Silk Road E-commerce", high-end shipping industry, export of large complete sets of equipment, and overseas employee services. Promote the use of RMB in Belt and Road co-building countries, and build a trade and investment service system to promote the global circulation of RMB relying on Shanghai.
(III) Strengthen Financing Services and Support Enterprises' Global Investment and Financing
Gather cross-border syndicated loan centers and businesses. On the premise of compliance with laws and regulations, carry out a pilot project of cross-border transfer of syndicated loan shares in institutions recognized by the National Administration of Financial Regulation, optimize the foreign debt registration management and cross-border guarantee processes, and better meet the syndicated loan needs of domestic enterprises in the process of "going global". When conditions are ripe, support willing and qualified banks to set up cross-border syndicated loan centers in Shanghai.
Pilot trade refinancing business through the rediscount window. Launch a pilot in Shanghai to support cross-border RMB trade financing through the rediscount window, encourage banks in Shanghai to expand cross-border trade credit issuance, reduce enterprises' RMB trade financing costs, and promote import and export trade denominated and settled in RMB.
Expand two-way domestic and foreign financing channels. Support qualified banks to explore and provide non-resident merger and acquisition (M&A) loan services for enterprises "going global" in the China (Shanghai) Pilot Free Trade Zone with reference to international practices, with the loan amount not exceeding 80% of the M&A transaction price and the loan term not exceeding 10 years. Support banks to meet the financing needs of domestic and foreign member units of multinational companies through forms such as "overseas direct loans", "domestic guarantee for overseas loans", and "overseas guarantee for domestic loans" in accordance with the principles of commercial rationality on the premise of controllable risks. Support enterprise group finance companies to carry out "overseas guarantee for domestic loans" business, pool funds of overseas member units and provide financing support for them, facilitate the overall domestic and foreign financing of domestic and foreign member units of enterprise groups, and reduce financing costs. Improve the development and supervision system of "Yulan Bonds" and further enrich value-added services such as agency interest payment and redemption, and corporate action handling.
Regulate the development of supply chain finance using blockchain technology. Give play to the role of leading enterprises in key industrial chains, realize the on-chain storage of information on key links such as orders, logistics and warehousing through technologies such as blockchain and big data, carry out pilot carbon footprint certification, gradually build a green and low-carbon supply chain system, implement differentiated credit management for supply chain finance, improve the supply chain financial product system, regulate the development of financing products such as accounts receivable, order financing, warehouse receipt and inventory pledge, and increase credit support for enterprises in the upstream and downstream of the industrial chain. Support banks in Shanghai to better serve enterprises "going global" in the Yangtze River Delta and other regions through supply chain finance. Support financial institutions to rely on the implementation and application of platforms such as "Maritime and Trade Digital Chain", and provide auxiliary verification for on-chain entities to carry out trade settlement, trade financing, cross-border insurance (cargo insurance, marine insurance, etc.) through on-chain certification and cross-matching of electronic documents. Support the Shanghai Clearing House to enrich the participant groups and clearing products of the bulk commodity "Clearing Link", promote the implementation of cross-border RMB clearing and settlement services, and support financial institutions to steadily expand the application scenarios of supply chain financial services and extend them to fields such as carbon emission rights.
Facilitate cross-border fund flow for financial leasing companies and other institutions. Explore and support financial leasing companies to carry out the business of sharing foreign debt quotas between parent and subsidiary companies. Facilitate the circulation and use of foreign currency rent collected by financial leasing companies (including financial leasing companies) in China, allowing it to be used for repaying foreign currency debts, paying overseas rent, and paying for overseas lease goods in accordance with relevant regulations. Support financial leasing companies (including financial leasing companies) and their subsidiaries to carry out overseas financial leasing business to serve enterprises "going global". Support overseas branches of financial institutions to actively provide financing support for the overseas sales of automobile groups.
(IV) Strengthen Insurance Protection and Improve Risk Management Levels
Increase insurance support for export enterprises. Strengthen insurance protection for key export enterprises such as domestic commercial aircraft, new energy vehicles, and large complete sets of equipment, promote cooperation between insurance companies and reinsurance companies, establish insurance pools, and enhance the ability to cover special risks. Support insurance companies to provide insurance services for related fields such as shipping according to China's new export advantages, new trends and industry characteristics, and continuously optimize insurance products. Support insurance companies to develop liability insurance for overseas clinical trials and high-end medical equipment for biomedical enterprises, and provide support for insured enterprises. Strengthen insurance protection for cross-border personnel in terms of accidental injury, medical care and diseases, and support insurance companies to develop cross-border personnel insurance products. Encourage airports, ports, travel agencies and other units to facilitate cross-border personnel in purchasing insurance products. The Shanghai Financial Regulatory Bureau guides relevant institutions to deepen the construction of the "Belt and Road Global Surveyor Service Network", enhance network functions and expand coverage areas. Support the Shanghai Shipping Insurance Association to formulate globally influential shipping insurance underwriting, claim settlement and recovery operation guidelines and standardized document templates in line with international practices.
Upgrade the service level of export credit insurance policies. Support insurance institutions to optimize and improve export credit insurance products and comprehensive service plans according to enterprises' operation conditions, project countries and financing models, and continuously optimize claim settlement conditions on the premise of complying with risk control standards to better provide risk protection for small and micro enterprises. Relying on the China (Shanghai) International Trade Single Window, actively provide "full online, collateral-free and low-cost" convenient financial services for eligible small and medium-sized micro enterprises. Upgrade the "credit insurance + guarantee + bank" financing model, optimize the tripartite cooperation list of credit insurance financing services for the high-quality development of Shanghai's foreign trade, and provide bulk active credit granting for cross-border e-commerce, service trade, and advanced customs certified enterprises. Encourage banks to timely and dynamically adjust country risk ratings and limits according to the "Country Risk Analysis Report" issued by policy-oriented export credit insurance institutions.
Provide high-quality reinsurance services. Support the establishment of legal person institutions or branches of insurance companies, reinsurance companies and insurance brokerage companies specializing in reinsurance business in the Lin-gang Special Area, and steadily promote online transactions of cross-border reinsurance and domestic reinsurance business. Focus on key fields such as the Belt and Road construction, aerospace and green shipping, study the feasibility of launching and trading pilot new risk transfer products, and improve the global underwriting capacity for enterprises and projects "going global". Strengthen central and local support for the Shanghai International Reinsurance Registration and Trading Center, and improve supporting policies such as supervision and local financial support. Support the electronic circulation of reinsurance VAT invoices through the Shanghai International Reinsurance Registration and Trading Center. Implement the statistical release rules for cross-border reinsurance premiums, and the cross-border reinsurance premium assumed through the registration and trading center shall be counted and released in accordance with the principles of domestic increment and non-duplication.
(V) Improve Comprehensive Financial Services and Enhance Global Resource Allocation Capacity
16. Strengthen the Global Resource Allocation Function of Key Financial Platforms
Establish a high-level International Financial Assets Trading Platform, developing it into an important functional platform for allocating global financial resources and facilitating international investors' in-depth participation in China's financial market. Support the Shanghai Gold Exchange (SGE) and other domestic exchanges in conducting product authorization cooperation with overseas exchanges, expanding the application of RMB benchmark prices in major international markets. Explore the internationalization of delivery for specific varieties on the Shanghai Gold Exchange and set up overseas delivery warehouses.
17. Improve the Facilitation of Global Asset Management
Support qualified domestic limited partner (QDLP) pilot enterprises in reasonably improving the efficiency of raised fund utilization in accordance with relevant regulations. Allow them to subscribe to domestic short-term cash management products with low risk ratings (R2 and below), such as money market funds, cash management wealth management products, and time deposits, as well as overseas cash management products based on the opening characteristics of overseas master funds. Support QDLP pilot enterprises to remit funds overseas in batches according to the needs of overseas master funds after completing domestic fund raising and fund establishment. Expand QDLP fund-raising sources and explore the solicitation of RMB and foreign currency funds.
18. Improve the Functions of Various Comprehensive Service Platforms
Enhance the "online + offline" comprehensive service capabilities, upgrade the level of the Belt and Road Comprehensive Service Center, and iterate and optimize the "Silk Road e-Start" mini-program and its financial service functions. Promote the integration and connection of bank-enterprise resources to achieve seamless integration of online lead generation and offline professional services. Promote cross-border sharing and exchange of data related to international trade, port logistics, etc. between offshore trade service platforms such as Offshore Link and Cross-Border Link and major trading regions.

III. Safeguard Measures
(I) Establish an Promotion Mechanism to Jointly Promote Implementation
Set up a special working group consisting of the Financial Work Office of the CPC Shanghai Municipal Committee, Shanghai Head Office of the People's Bank of China, Shanghai Financial Regulatory Bureau, Shanghai Securities Regulatory Bureau, Shanghai Branch of the State Administration of Foreign Exchange, Shanghai Municipal Development and Reform Commission, Shanghai Municipal Commission of Commerce, Shanghai Municipal Commission of Economy and Informatization, Shanghai State-owned Assets Supervision and Administration Commission, and financial institutions. Provide "financial service packages" for enterprises "going global" and encourage financial institutions in Shanghai to expand overseas.
(II) Strengthen Promotion and Publicity, and Refine Service Delivery
Carry out the "Financial Services to 100 Parks and 1,000 Enterprises" activity, and promote policies through various methods such as online release and counter consultation. All relevant departments, key districts, and financial institutions shall assign special personnel to organize and provide quality services. Establish an expert database, set up professional teams, and launch demonstration outlets to provide integrated services including RMB and foreign currency services, offshore and onshore services, and corporate and personal services.
(III) Strengthen Legal Supply and Create a Sound Environment
Improve mechanisms for financial legislation, supervision, and dispute resolution, and support Shanghai in exploring an offshore financial system. Focus on the integrated development of finance with data, talents, technology, and other sectors.

People's Bank of China

China Financial Regulatory Administration

State Administration of Foreign Exchange

People's Government of Shanghai Municipality

March 25, 2025