The Dream Factory of China

Source :Qianhai Media Center

Seventeen financial measures supporting the construction of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) have been implemented in Shenzhen and three other measures have been piloted in Qianhai, the Shenzhen branch of the People’s Bank of China (PBOC) said May 15.

The central bank and three other State agencies recently released 45 measures on supporting GBA construction in the financial sector.

Among them, 17 measures have been well implemented. They include a pilot program for facilitation of capital account income and expenses, a pilot program for foreign debt registration reform, a pilot program for cross-border asset transfers and a pilot program for the establishment of yuan-based overseas investment and lending funds.

Qianhai has piloted a high-level trade and investment facilitation program, under which mainland banks in the GBA have further simplified the procedures of cross-border yuan business for qualified enterprises.

Mainland banks in the GBA are also urged to handle applications for cross-border yuan payments and receipts for direct investment and overseas listing upon receiving the instructions for payments and receipts from domestic enterprises.

Under the third measures, non-investment foreign-funded companies in Qianhai are allowed to use their capital project incomes in foreign currencies or in yuan after conversion for domestic equity investment according to the actual investment scale.

The three measures piloted in Qianhai are expected to facilitate cross-border trade and investment, and create a better business environment in the free trade area.

The PBOC Shenzhen branch is working on the implementation of 11 other measures that include establishing a cross-border fund management mechanism, piloting cross-border capital pool integrating yuan and foreign currencies, promoting cross-border credit cooperation and establishing financial supervision and coordinating mechanisms in the GBA, according to a release by PBOC Shenzhen branch.

The 45 measures issued by the central bank include 23 financial reform and opening up measures from four perspectives such as trade and investment facilitation, cross-border circulation and exchanges of currencies, expanding opening up of the financial industry and deepening financial cooperation between the mainland, Hong Kong and Macao and other measures on prevention of cross-border financial risks.