The Dream Factory of China

Representatives of two enterprises that have applied for a free trade account (FT account) received their business handling receipts at a Qianhai free trade account business introduction conference Jan.14.

At the conference, held at Qianhai Shenzhen-Hong Kong Fund Town, the functions and features of the FT account were explained to delegates of more than 100 enterprises and financial institutions from the free trade area and overseas countries.

On Dec. 31, with the approval of People’s Bank of China, the FT account business was officially launched in Qianhai. The Shenzhen Branch of Shanghai Pudong Development Bank (SPDB) passed an on-site acceptance of the People’s Bank of China, becoming the first bank in Shenzhen licensed to conduct FT account-related business.

Shenzhen Prolto Supply Chain Management Co. Ltd. is among the first batch of enterprises to open FTE and FTN accounts (two subclasses of FT account) with SPDB. A staff member with the company said that thanks to the integration account of domestic currency and foreign currency, the company's financial management costs and exchange costs were reduced and capital efficiency was improved.

The FT account is an important step for the country to further open up the financial market and prevent financial risks. It is also a major piece of financial infrastructure that is compatible with the construction of an open economic system.

The FT account has five major advantages: reducing the cost of corporate account management, facilitating the cross-border transfer of funds by enterprises, reducing the sale and purchase costs of foreign exchange, promoting enterprises to conduct more innovative cross-border financial business and facilitating overall risk control.

The FT account will allow Qianhai enterprises to use international financial resources more efficiently and achieve higher competitiveness in the international market, enhance the interconnection of the financial market in the Guangdong-Hong Kong-Macao Greater Bay Area and assist Shenzhen in constructing the pilot demonstration area of socialism with Chinese characteristics.

In the future, Qianhai will join hands with more financial institutions to explore new financial services to enhance its role as a pilot demonstration window for the opening up of the country's financial industry.