People's Bank of China, Opinions on Financial Support for the Establishment of the China (Shanghai) Pilot Free Trade Zone

Published: December 2 2013

Main contents: Funds may be freely transferred between resident free trade accounts and offshore accounts, non-resident accounts in China proper, non-resident free trade accounts and other resident free trade accounts (Article 5). Matters such as cross-border financing and provision of security may be carried out through resident free trade accounts and non-resident free trade accounts. When the conditions are ripe, the renminbi and foreign currency funds in accounts will be freely convertible (Article 6).

For cross-border direct investment of the China (Shanghai) Pilot Free Trade Zone (PFTZ), prior approval may be obviated in accordance with relevant Shanghai municipal provisions, and the cross-border receipts, payments and conversions involved may be carried out directly with banks (Article 8). Qualified individuals employed in the PFTZ may engage in various types of offshore investment, including securities investment, in accordance with provisions (Article 9). Financial institutions and enterprises in the PFTZ may invest and trade on the securities and futures exchanges in the Shanghai region. The foreign parents of enterprises in the PFTZ may offer renminbi denominated bonds on domestic capital markets in accordance with relevant state provisions. As required by the market, the launching of international financial asset trading in the PFTZ will be explored (Article 10). As required for business, Chinese-invested and foreign-invested enterprises, non-bank financial institutions and other economic organisations registered in the PFTZ may raise renminbi and foreign currency funds from abroad in accordance with provisions (Article 11).

Financial institutions and enterprises in the PFTZ may borrow renminbi funds from abroad, but such funds may not be used to invest in negotiable securities or derivatives or for entrusted loans (Article 15). Enterprises in the PFTZ may, based on their business requirements, engage in bi-directional renminbi fund pool business within the group (Article 16).

Related legislation: General Plan for the China (Shanghai) Pilot Free Trade Zone, Sept 18 2013, CLP 2013 No.6 p.86

Published: December 2 2013

Main contents: Funds may be freely transferred between resident free trade accounts and offshore accounts, non-resident accounts in China proper, non-resident free trade accounts and other resident free trade accounts (Article 5). Matters such as cross-border financing and provision of security may be carried out through resident free trade accounts and non-resident free trade accounts. When the conditions are ripe, the renminbi and foreign currency funds in accounts will be freely convertible (Article 6).

For cross-border direct investment of the China (Shanghai) Pilot Free Trade Zone (PFTZ), prior approval may be obviated in accordance with relevant Shanghai municipal provisions, and the cross-border receipts, payments and conversions involved may be carried out directly with banks (Article 8). Qualified individuals employed in the PFTZ may engage in various types of offshore investment, including securities investment, in accordance with provisions (Article 9). Financial institutions and enterprises in the PFTZ may invest and trade on the securities and futures exchanges in the Shanghai region. The foreign parents of enterprises in the PFTZ may offer renminbi denominated bonds on domestic capital markets in accordance with relevant state provisions. As required by the market, the launching of international financial asset trading in the PFTZ will be explored (Article 10). As required for business, Chinese-invested and foreign-invested enterprises, non-bank financial institutions and other economic organisations registered in the PFTZ may raise renminbi and foreign currency funds from abroad in accordance with provisions (Article 11).

Financial institutions and enterprises in the PFTZ may borrow renminbi funds from abroad, but such funds may not be used to invest in negotiable securities or derivatives or for entrusted loans (Article 15). Enterprises in the PFTZ may, based on their business requirements, engage in bi-directional renminbi fund pool business within the group (Article 16).