Shanghai Headquarters of the People’s Bank of China optimizes financial services to support high-quality development of foreign-related economies

The Shanghai Headquarters of the People’s Bank of China adheres to the fundamental purpose of financial services to the real economy, combines Shanghai’s high proportion of export-oriented economy, actively creates a good monetary and financial environment, improves the level of cross-border trade and investment and financing facilitation, solidly promotes cross-border use of RMB, and deepens finance. The industry is open to a high level, and we will strengthen support for stabilizing foreign trade and foreign investment, and promote high-quality development of the foreign-related economy.
First, continue to increase the scale of cross-border RMB use in key areas, key enterprises, and key regions. Relying on the construction of Shanghai’s “Five Centers”, we will use financial resources such as banking, leasing, insurance, and RMB Cross-Border Payment System (CIPS) to give full play to the demonstration and leading role of central state-owned enterprises as chain owners and promote settlement currencies one by one along the industrial chain. Conversion. Promote the development of key businesses such as oil and gas trade and bulk commodities, and guide banks and payment institutions to cooperate to provide convenient cross-border RMB settlement services for new foreign trade formats such as cross-border e-commerce. Actively promote cross-border use of RMB between Shanghai and key regions such as RCEP, the Belt and Road Initiative and ASEAN. Orderly advance the pilot reform of offshore trade financial services in Lingang New Area. In the first seven months of this year, Shanghai’s total cross-border RMB receipts and payments was 18.83 trillion yuan.
The second is to coordinate the use of cross-border trade investment and financing policies to help foreign trade development and attract investment and use capital.Solidly promote the pilot of high-level opening up of cross-border trade, launch new offshore international trade business background verification application scenarios, and optimize fund settlement services for new trade business entities. Implement high-level opening pilot projects for cross-border investment and financing, promote the expansion and quality improvement of the integrated domestic and foreign currency capital pool business of multinational corporations, optimize the pilot working mechanism for cross-border investment of equity investment funds, facilitate the entry and use of start-up funds for non-enterprise scientific research institutions, and support the attraction and use of foreign investment. Guide enterprises to improve exchange rate hedging mechanisms, promote the inclusion of exchange rate hedging and credit enhancement services into the scope of relevant financing guarantee businesses, and support foreign-related enterprises to operate steadily. In the first seven months of this year, Shanghai’s total foreign-related revenue and expenditure reached US$3.26 trillion.
The third is to perform the agency service functions of overseas central banks with high quality and facilitate foreign institutions to invest in the inter-bank bond market. The Shanghai Headquarters of the People’s Bank of China conscientiously performs its responsibilities related to the access of foreign institutions to the inter-bank bond market in my country, supports foreign institutions to enter the market as legal persons, and establishes a one-stop account opening platform for foreign institutions in conjunction with the bond market infrastructure to further improve the convenience of foreign institutions entering the market. As of the end of July this year, 1171 foreign institutions had entered the inter-bank bond market, with a debt balance of 3.93 trillion yuan. In addition, the Shanghai headquarters of the People’s Bank of China continues to optimize agency investment services for overseas central bank institutions. The variety of agency services continues to be enriched, business models become more diverse, and the scale of transaction settlement has steadily increased.
In the next step, the Shanghai Headquarters of the People’s Bank of China will actively create a good monetary and financial environment based on implementing national strategies, safeguarding national interests, and ensuring national security, better play the role of financial support in stabilizing foreign trade and foreign investment, and further improve the quality and efficiency of financial services to the real economy.