The People's Bank of China, the National Financial Regulatory Administration, the State Administration of Foreign Exchange and the Shanghai Municipal People's Government jointly published an action plan to further improve cross-border financial service facilitation as part of Shanghai’s international financial centre development. The plan sets out 18 measures spanning cross-border settlement, foreign exchange risk management, financing, insurance and broader financial service infrastructure, with a focus on supporting firms’ overseas operations and Belt and Road-related activity. Key actions include piloting a revised foreign exchange business operating model in which banks classify firms by foreign exchange compliance risk and provide differentiated facilitation, alongside a mechanism for banks to appeal and obtain a review of “due diligence” determinations for suspected breaches. The package also targets more efficient group treasury management through optimised integrated renminbi and foreign-currency cash pooling and enhanced free trade zone cash pools, and expands free trade account use cases including market-based pricing for non-resident foreign-currency deposit interest rates. On infrastructure and digitisation, it encourages cross-border digital identity verification and blockchain-enabled checks on electronic documents, supports Shanghai digital renminbi pilot banks’ participation in the multilateral central bank digital currency bridge project, and seeks to expand the Cross-Border Interbank Payment System’s functionality and network coverage. For funding and hedging, the plan promotes a wider range of FX hedging products and outreach to first-time hedging users, pilots cross-border transfers of syndicated loan participations, pilots rediscount-window support for renminbi cross-border trade financing in Shanghai, and explores non-resident acquisition loans in the Shanghai free trade zone capped at 80% of the transaction price with maturities up to 10 years. Next steps focus on implementation, with the People's Bank of China and the Shanghai Municipal People's Government coordinating with relevant departments to drive delivery of the measures, supported by a dedicated taskforce involving local regulatory bodies and financial institutions to provide a packaged set of services for outbound firms.
Central Bank of the Republic of China 2025-04-21
People's Bank of China and partner authorities issue 18-measure plan to further facilitate cross-border financial services in Shanghai
The People's Bank of China and other regulators have released an action plan to enhance cross-border financial services for Shanghai's international financial centre development. It includes 18 measures on foreign exchange risk management, financing, and digital infrastructure, such as piloting a revised foreign exchange business model and expanding the Cross-Border Interbank Payment System. Implementation will be coordinated by the People's Bank of China and the Shanghai Municipal People's Government, supported by a taskforce of local regulators and financial institutions.