China (Shanghai) Pilot Free Trade Zone

(sh-italent.com)Updated : 2017-02-03

Examples of Innovative Accomplishment of Financial Reform in Shanghai FTZ


Examples of financial reforms and policies in the Shanghai FTZ

1.Market-based interest rate

  • Establish the system for market-based interest rate

  • Pilot insurance of negotiable certificates of deposits

  • Remove the cap of small foreign exchange deposits

2.Cross-border use of RMB

  • Support and facilitate RMB settlement under normal account and for direct investment

  • Support to borrow offshore RMB capital

  • Support to operate RMB cash pooling and single current account

3.Free Trade Account System

  • Capital can be transferred freely among individual FT account, individual overseas account, non-individual domestic account, non-individual FT account, and other individual FT accounts

  • Capital flows between individuals FT account and settlement accounts of offshore banks located inside the FTZ are administrated as cross-border capital flow

4.Reform of Foreign Exchange Administration

  • Simplify administration of foreign exchange cash pooling and deepen the pilot reforms of foreign exchange administration for international trade settlement

  • Simplify the foreign exchange registration procedures for direct investment

5.Convertibility of RMB Capital Account

  • Facilitate companies’ cross-border investment

  • Promote individual’s cross-border investment

  • Open the capital market progressively

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