SHENGYANG, Dec. 5, (Xinhua)--A document released by Shenyang Branch of the People's Bank of China (PBOC), put forward to expand cross-border use of RMB in China (Liaoning) Free Trade Zone (Liaoning FTZ).
According to the document named Guiding Opinions on Financial Support for the Construction of China (Liaoning) Pilot Free Trade Zone, PBOC Shenyang Branch will support financial institutions and enterprises in issuing RMB bonds abroad in accordance with relevant regulations, optimize the cross-border two-way RMB capital pool business management of qualified multinational enterprises, and support banks in issuing RMB project loans abroad in accordance with relevant regulations.
"This will further open up channels for financial support on real economy development," said Zhang Xianhe, Director of the Financial Institute of Liaoning Academy of Social Sciences. It would reduce enterprises' exchange cost, simplify the formalities for settlement, speed up settlement and improve the efficiency of fund use, he added.
Besides, PBOC Shenyang Branch had launched a package of supporting policies, including supporting Liaoning FTZ in strengthening the financial cooperation with the countries along and around the Belt and Road, allowing banking institutions meeting relevant conditions to transfer foreign currency banknotes into and out of China, relaxing multinational companies' access to the centralized operation and management of foreign exchange funds and supporting banks in developing RMB and foreign exchange derivatives and services.
Liaoning FTZ is among the third group of seven pilot free trade zones approved by the State Council, and it is the only free trade zone in northeastern China. Liaoning FTZ includes Dalian, Shenyang and Yingkou areas. By the end of July, 2017, more than 10,000 new enterprises had been registered in Liaoning FTZ, with a total registered capital of more than 150 billion yuan (about 22.72 billion U.S. dollars).
PBOC Shenyang Branch is working with Shenyang Area of Liaoning FTZ to plan and construct "Finance Island", according to an official of PBOC Shenyang Branch. It will build Advanced Manufacturing Fund Town, Northeast Financial Leasing Center, Northeast Asian Financial Transaction Center. Supporting policies will be granted to financial institution headquarters moving into Finance Island and Shenyang Area, financial intermediaries, financial education and training institutions and financial element trade markets.
(Contributed by Xu Yang and Ding Feibai, edited by Tong Wei)
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