New Round of Study Cases Released by FTZ to Stimulate Yuan Trade
2014-11-11
More free trade accounts and cross-boarder yuan trade has been highlighted after Shanghai Pilot Free Trade Zone (FTZ) disclosed a second round of study cases in financial innovation on July 4, according to the Shanghai Financial Services Office and the zone’s management committee.
The case studies on financial innovation of FTZ, which disclosed regularly since March 25, aim to push financial reform within the zone and to encourage more innovative services to meet the demand for real economy and investment.
Within the cases, free trade accounts were newly provided in the FTZ to both domestic and foreign companies by the People’s Bank of China and others, in order to lubricate the procedure of cross-border money transfer and investment overseas.
From the aspect of stimulating cross-boarder yuan trade, the Bank of Shanghai is arranging offshore syndication loan for a company in the FTZ together with counterpart in Hong Kong and Taiwan, while Citibank China was also trying to provide services to centralized payment in the cross-border yuan settlement which cuts foreign exchange and financing costs.
The disclosure also mentioned direct foreign exchange registration and innovative equity trading such as cross-boarder merger carried out by China banks in FTZ.