Several Measures for Supporting the Innovative Development of the Financial Industry in Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone

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To fully implement the guiding principles of the Overall Plan for Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone, to open to the outside world on a higher level and with greater efforts in wider fields, implement a cross-border financial management system that facilitates the receipt and payment of funds, intensify the risk and pressure tests for an open economy, make financial services more innovative, financial institutions more concentrated, headquarters more powerful and financial talents more abundant in Lin-gang Special Area through functional policies, tax policies, fiscal policies and comprehensive supportive policies, and to accelerate efforts in building Lin-gang Special Area into a special economic zone with more influence and competitiveness in the international market, Several Measures for Supporting the Innovative Development of Financial Industry (hereinafter referred to as "Measures") is hereby formulated.

I. Key areas to support

Lin-gang Special Area shall select key financial fields that address China's strategic needs are in great demand in the international market and have high requirements for openness, but are not yet ready for implementation in other regions, to build a number of functional financial platforms with higher openness and create core functions for the allocation of global high-end financial resources and factors, thereby expanding the depth and breadth of cross-border financial services.

1. Developing cross-border financial services by benchmarking international standards. Under the premise of legal compliance and controllable risks, financial institutions are supported to provide enterprises and non-residents in Lin-gang Special Area with cross-border financial services such as bond issuance, investment, mergers, and acquisitions, and centralized cross-border capital operation in accordance with international prevailing rules. Enterprises in Lin-gang Special Area are supported to carry out real and legal offshore resale business. Financial institutions can provide enterprises in Lin-gang Special Area with efficient and convenient cross-border financial services in accordance with international practices. Enterprises and financial institutions in Lin-gang Special Area are supported to carry out shipping financing settlement, freight index derivatives and green finance, etc.

2. Strengthening flexibility in the use of cross-border funds. Free trade accounts integrating Chinese currency renminbi and foreign currencies shall be piloted to explore free capital outflow and inflow, and free convertibility. Foreign funds raised by enterprises and qualified financial institutions in Lin-gang Special Area and their revenue from cross-boundary services can be used autonomously for business investment activities in Lin-gang Special Area or overseas. Enterprises with a high credit rating in Lin-gang Special Area are supported to pilot the facilitation of foreign exchange receipts and payments.

3. Promoting the construction of fund management centers. The threshold for entry into centralized cross-border capital operation shall be appropriately lowered to further facilitate two-way cross-border capital pooling for enterprises in Lin-gang Special Area, thereby realizing centralized fund management.

4. Other special or innovative financial services, personalized services and customized policies shall be adopted after studies.

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