State Council, General Plan for the China (Chongqing) Pilot Free Trade Zone

国务院中国 (重庆) 自由贸易试验区总体方案

January 02, 2017 | BY

Susan Mok

Chongqing FTZ encourages renminbi to foreign exchange spot trading and derivatives trading.

Clp Reference: 2100/17.03.15 Promulgated: 2017-03-15

Promulgated: March 15 2017

Main contents: Development of a new “industry chain + value chain + logistics chain” inland processing trade model will be explored (Item 6, Section Three).

Multinational corporations are encouraged to establish regional headquarters, research and development centers, sales centers, repair and maintenance centers, logistics centers and settlement centers in the zone. Application of big data analysis in sectors such as commerce and trade services, medicine, education, finance and public administration will be promoted. Efforts will be expended in developing third-party services such as inspection and testing, standards, and certification oriented toward the entire design, development, production, manufacturing and after-sales service process. The engagement in research, development and design, the development of hi-tech high value-added products and business such as domestic and foreign repair and maintenance, testing, and dismantling that is oriented toward the global market and provided that risks are controllable is encouraged. The engagement in globally oriented bonded cultural and art work exhibition, auctioning and dealing business is supported. Development of art-work-dealing market functions will be made more extensive. Emphasis will be put on film and television post production, disk copying, printing, film copying, etc. (Item 7, Section Three).

The engagement in business such as global repair and maintenance, and international sorting and transshipment by enterprises in the zone is supported. Engagement in the overseas consignment sale of domestic goods is encouraged. Development of the aviation repair and maintenance business will be accelerated. The engagement in the special customs surveillance zones of the free trade zone in the bonded warehousing of assembled imported motor vehicles and financing secured by the pledge of bonded goods is permitted. The establishment in the zone by qualified domestic and foreign firms of financial leasing companies and lease financing companies that engage in lease financing business related to aircraft, vessels and large engineering equipment is supported. The development of international courier logistics is supported, and when the conditions are met, a pilot project for international transshipment and consolidation business for express air mail in the zone will be launched (Item 8, Section Three).

Cross-border bi-directional renminbi fund pool business by multinational enterprise groups will be launched. Lease financing firms in the zone are permitted to engage in cross-border bi-directional renminbi fund pool business in a lawful and compliant manner. Lease companies in the zone are permitted to open renminbi accounts abroad to be used for cross-border renminbi leasing business. The launch of renminbi cross-border reinsurance business is supported. Foreign-invested equity investment management institutions and foreign-invested venture capital management institutions are permitted to promote in the zone funds that manage renminbi equity investments and venture capital investments. Engagement in renminbi offshore securities investment in accordance with provisions by qualified enterprises in the zone is supported (Item 12, Section Three).

Qualified lease financing business in the zone is permitted to charge rent in foreign currencies. Foreign enterprises will gradually be permitted to participate in commodity futures trading. Development of the commercial factoring business is supported (Item 13, Section Three).

The registration and establishment of branches or dedicated subsidiaries in the zone by securities business firms is supported. The entry into the interbank foreign exchange market by qualified securities and futures business firms in Chongqing to engage in renminbi to foreign exchange spot trading and derivatives trading is supported. The participation in mutual recognition of mainland Chinese and Hong Kong fund products by fund products in the zone that satisfy mutual recognition conditions is supported. The offering of negotiable certificates of deposit in the zone by qualified banking financial institutions is supported, and domestically and foreign-invested enterprises registered in the zone may participate in investment therein. The establishment of institutions such as domestically and foreign-invested reinsurance institutions, foreign-invested health insurance institutions and dedicated international multi-modal logistics insurance institutions in the zone is supported. The establishment in the zone of new types of insurance organizations, such as insurance asset management companies, captive insurance companies and mutual insurance institutions is encouraged. Domestic futures exchanges are encouraged to engage in business such as futures bonded trading and financing secured by the pledge of warehouse receipts in the special customs surveillance zones of the free trade zone (Item 14, Section Three).

Related legislation: General Plan for the China (Liaoning) Pilot Free Trade Zone, General Plan for the China (Zhejiang) Pilot Free Trade Zone, General Plan for the China (Henan) Pilot Free Trade Zone, General Plan for the China (Hubei) Pilot Free Trade Zone, General Plan for the China (Sichuan) Pilot Free Trade Zone and General Plan for the China (Shaanxi) Pilot Free Trade Zone

clp reference:2100/17.03.15(5) promulgated:2017-03-15

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