The People's Bank of China, together with the National Development and Reform Commission, the National Financial Regulatory Administration, the China Securities Regulatory Commission, the State Administration of Foreign Exchange and the Shanghai Municipal People's Government, has issued an action plan to develop offshore finance in Shanghai. The plan sets out a phased framework to build an offshore financial system in Shanghai, with pilot programs in Pudong New Area, and targets an initial institutional framework by the end of 2027, a relatively mature system by the end of 2030 and a strategic hub linking offshore and onshore finance by the end of 2035. Initial pilot business lines include offshore trade finance, free trade offshore bonds, offshore reinsurance, treasury center fund operations, offshore renminbi foreign exchange trading and financial services for nonresident individuals. The measures combine controlled liberalization of business activity with account segregation and tighter risk controls. Banks will be allowed to use free trade accounts to serve eligible offshore trade, leasing, shipping and global treasury activities, while Shanghai Free Trade Zone separate accounting units will be able to invest in free trade offshore bonds within a dedicated quota. The plan also backs construction of cross-border, offshore and blockchain infrastructure through the digital renminbi international operation center, with gradual expansion of digital renminbi use in offshore business. Beyond business pilots, it calls for central regulators to develop offshore finance rules, allows Shanghai to study supporting local rules and arbitration arrangements under existing legislative mechanisms, and requires stronger monitoring of capital flows, coordinated oversight, unified regulatory reporting and risk disposal arrangements to address regulatory arbitrage and other vulnerabilities. Relevant departments are to issue detailed rules for specific pilot business categories. The People's Bank of China and the Shanghai Municipal People's Government will coordinate with other authorities to implement the plan, with a stated focus on supporting Chinese companies' overseas expansion and Belt and Road activity.
Central Bank of the Republic of China2026-06-17
People's Bank of China and five authorities issue Shanghai offshore finance action plan with Pudong pilots and 2035 roadmap
China's central bank and five other authorities have issued an action plan to build an offshore finance system in Shanghai, centered on pilot programs in Pudong and phased goals through 2035. The plan opens initial trials in offshore trade finance, free trade offshore bonds, reinsurance, treasury centers, offshore renminbi trading and services for nonresident individuals, while pairing them with digital renminbi infrastructure, account segregation and tighter risk controls. Detailed rules for specific pilots will follow from the relevant authorities.