At a joint press conference, the People's Bank of China, together with the National Financial Regulatory Administration, the State Administration of Foreign Exchange and the Shanghai Municipal People’s Government, introduced a published action plan to further improve cross-border financial services facilitation for Shanghai’s international financial centre. The plan sets out 18 measures across five areas, aimed at making cross-border settlement, hedging, financing, insurance and integrated financial services more efficient for firms, including those expanding overseas. Key measures include streamlining foreign exchange processes and cash management, expanding the functionality and use cases of free trade accounts, upgrading digital service delivery and strengthening the Cross-Border Interbank Payment System’s (CIPS) capabilities and global reach. The package also covers new or expanded financing and risk-management tools, including piloting RMB cross-border trade refinancing via the rediscount window (launched in Shanghai in December 2024), supporting the build-out of a cross-border syndicated loan centre, exploring non-resident M&A loans in the Shanghai Free Trade Zone with loan amounts up to 80% of the acquisition price and maturities up to 10 years, and using blockchain to standardise the development of supply chain finance. On insurance and reinsurance, the measures include stronger export insurance support and higher-quality reinsurance services, alongside reported progress on Shanghai’s international reinsurance hub, including 22 reinsurance operating centres or branches established in Lingang and reinsurance registration volumes exceeding CNY 110bn at the registration and trading centre. Authorities indicated they will move to implement the measures, while Shanghai outlined rollout steps including a dedicated working task force and expert pool, a forthcoming conference on financial services for firms “going out”, citywide outreach across all 16 districts, and the launch of a consolidated “going-out” financial services package. Shanghai also noted that Pudong’s local rules to promote free trade account business will take effect on 1 May.
Central Bank of the Republic of China 2025-04-23
People's Bank of China and partner agencies issue 18-measure Shanghai plan to ease cross-border financial services
The People's Bank of China and other regulators unveiled a plan to enhance cross-border financial services for Shanghai's financial centre. It includes 18 measures to improve settlement, hedging, financing, insurance, and integrated services, featuring streamlined foreign exchange processes, expanded free trade accounts, and enhanced digital services. Key initiatives involve piloting RMB cross-border trade refinancing, supporting a syndicated loan centre, and advancing Shanghai's reinsurance hub.