Shanghai Cross-border financial action plan released

An action plan to further improve the facilitation of cross-border financial services provided in Shanghai was released on April 21, 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:

01.Optimize the management and business expansion procedures for foreign exchange businesses
02.Complete the companies' global capital management system
03.Expand the function and application scenarios of FT accounts04Improve financial institutions' digital services
05.Improve the function of CIPS and expand its global coverage
06.Develop diversified products and services for foreign exchange hedging
07.Promote the cross-border use of the renminbi
08.Gather cross-border syndicated loan centers and businesses09Conduct 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
Source: Intl Services Shanghai