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