Central Bank: Improve cross-border financial services and support enterprises to "go global"

Source: Securities Times Network

Reporter: Sun Lulu from Securities Times

Recently, the People's Bank of China, the National Financial Regulatory Administration, the State Administration of Foreign Exchange, and the People's Government of Shanghai Municipality jointly issued the "Action Plan for Further Improving the Facilitation of Cross-border Financial Services in the Shanghai International Financial Center" (hereinafter referred to as the "Action Plan"). To help the outside world better understand the policy measures of the "Action Plan", on April 23, the People's Bank of China held a press conference to highlight the key points of the new policy.

Lu Lei, Deputy Governor of the People's Bank of China, stated that the "Action Plan" has two core elements. One is to emphasize the construction of the Shanghai International Financial Center, and the other is to focus on improving the facilitation of cross-border financial services. Currently, the construction of the Shanghai International Financial Center is advancing steadily and has achieved remarkable results. In particular, it has taken the lead in pilot tests in the field of cross-border financial services, forming a number of "Shanghai experiences" that can be replicated and promoted. The "Action Plan" introduces a series of financial support policies, forming a powerful support system that empowers enterprises to "go global", which is conducive to enhancing the internationalization level of the Shanghai International Financial Center, continuously strengthening its competitiveness and influence, and better serving the construction of a financial powerhouse.

Against the backdrop of profound changes in the current external environment, improving the facilitation of cross-border financial services is of even greater significance. The "Action Plan" proposes 18 key measures from five aspects, including improving cross-border settlement efficiency, optimizing exchange rate risk hedging services, strengthening financing services, enhancing insurance protection, and improving comprehensive financial services.

Wang Xin, Director of the Research Bureau of the People's Bank of China, said that the "Action Plan" is supported by the optimization of business processes and technological empowerment, taking into account both efficiency and security, and has four highlights. First, many policies are piloted first. The "Action Plan" actively explores facilitation measures, providing "Shanghai experiences" for replication and promotion in other regions. Second, it optimizes business processes, proposing a series of measures to optimize processes, striving to build a safe, convenient, and efficient financial service environment for enterprises going global to participate in international competition and cooperation. Third, it innovates products and services, carrying out product innovation for multiple scenarios such as corporate financing and foreign exchange risk management. Fourth, it empowers through digitalization. The "Action Plan" will significantly optimize the business efficiency and experience of cross-border financing, settlement, and risk management for enterprises going global.

Wu Wei, Executive Vice Mayor of Shanghai, said that to accelerate the implementation of the policies, Shanghai will create a "Financial Service Package for Enterprises Going Global", integrating various financial products and services to provide all-round and one-stop financial solutions for enterprises going global. The service package will provide personalized financial product portfolios and professional service teams according to the needs and characteristics of enterprises, ensuring that enterprises can obtain the most suitable financial services. For some key enterprises, we will also adopt customized services of "one enterprise, one policy" to tailor exclusive financial support plans for enterprises, better meeting their cross-border financial service needs.

Lu Lei said that the "Action Plan" optimizes cross-border fund management, upgrades the functions of free trade accounts, improves the efficiency of enterprises' cross-border fund allocation, reduces the international operation costs of enterprises, and strongly supports enterprises in expanding overseas markets. Through innovation in exchange rate risk hedging and compliance management, it enhances the risk resistance of enterprises, builds a security barrier for multinational operations, and escorts enterprises' global layout. In addition, it is also conducive to promoting the internationalization of the RMB. By improving the convenience and collection and payment efficiency of the cross-border use of the RMB, strengthening the promotion of the concept of "local currency priority" and the publicity of cross-border RMB policies, it further expands the use of the RMB in cross-border trade and investment.

Disclaimer: The views expressed in this article only represent the personal views of the author and do not constitute investment advice on this platform. This platform makes no guarantees regarding the accuracy, completeness, originality, and timeliness of the article information, nor does it assume any liability for any losses incurred due to the use or reliance on the article information.