Eight departments including the central bank jointly issued “Opinions on Financial Support to Accelerate the Construction of New Land and Sea Corridors in the West”

Zhitongcaijing · 2d ago

The Zhitong Finance App learned that on December 24, 8 departments including the central bank jointly issued “Opinions on Financial Support to Accelerate the Construction of New Land and Sea Corridors in the West”. The “Opinion” proposes 21 key measures in terms of improving the financial organization collaboration system, building a high-quality financial communication system, promoting institutional reform and innovation, building a digital financial service platform, improving the open financial cooperation system, and deepening cross-border financial supervision collaboration across provinces, to promote the implementation of the two core financial functions of “financing” and “settlement”, and support the high-quality development of the new land and sea corridors in the west.

Among them, it was mentioned to expand the use of RMB across borders. Strengthen bilateral monetary cooperation with countries in Southeast Asia and Central Asia to create support conditions for the cross-border use of RMB. Further promote pilot RMB settlement facilitation projects for higher-level trade and investment, and support foreign trade enterprises to make more use of RMB for settlement. Support investors from ASEAN countries to invest in RMB and reinvest domestically. Encourage commodity transactions to be settled in RMB.

Give full play to the advantages of digital yuan payment and settlement, low cost, programmability, etc., study the use of digital yuan smart contracts to create innovative solutions, and explore the feasibility of expanding the application of digital yuan in scenarios such as channel payment settlement, financing, and tax refund. Research and expand the scope of cross-border applications of digital yuan, and use bilateral and multilateral cross-border business models to reduce costs and increase the efficiency of cross-border payments through channels.

Facilitate cross-border trade settlement. Eligible banks are supported to handle real and compliant trade in goods and services settlements for high-quality enterprises in accordance with the principle of “understanding customers, understanding business, and due diligence”. Support eligible banks to handle service trade advance and apportionment services for high-quality enterprises. Support new trade formats such as market procurement trade methods and cross-border e-commerce to facilitate cross-border settlement in local and foreign currencies. Eligible banks are encouraged to independently handle new types of offshore international trade cross-border fund settlement services for high-quality enterprises, such as new types of offshore transfer transactions, global procurement, outsourced processing, and overseas purchases of goods for contracted projects.

Explore international cooperation in digital finance. Support provinces (regions and municipalities) along the route to participate in multilateral central bank digital currency bridge projects and promote the use of central bank digital currencies for cross-border payments with Thailand, Hong Kong, the United Arab Emirates, Saudi Arabia, etc. Support the exploration and promotion of digital yuan cross-border payment pilot projects between the Mainland and Singapore. Support provinces (regions and municipalities) that are in a position to do so along the route to build cross-border e-commerce digital service platforms, connect with digital cross-border e-commerce and trade platform companies in Singapore and other countries, and enhance cross-border e-commerce service capabilities.

The original text is as follows:

People's Bank of China, National Development and Reform Commission, Ministry of Finance, Ministry of Transport, Ministry of Commerce, General Financial Supervisory Administration, China Securities Regulatory Commission, State Administration of Foreign Exchange

Jointly issued “Opinions on Financial Support to Accelerate the Construction of New Land and Sea Corridors in the West”

In order to thoroughly implement the spirit of General Secretary Xi Jinping's important speech on the construction of new land and sea corridors in the west and the major decisions and arrangements of the Party Central Committee and the State Council on speeding up the construction of new land and sea corridors in the west and improving the financial service system for the western land and sea corridors, recently, the People's Bank of China, the National Development and Reform Commission, the Ministry of Commerce, the General Administration of Financial Supervision, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange jointly issued “Opinions on Financial Support to Accelerate the Construction of New Land and Sea Corridors in the West” (hereinafter referred to as “Opinions”).

The “Opinion” proposes 21 key measures in terms of improving the financial organization collaboration system, building a high-quality financial communication system, promoting institutional reform and innovation, building a digital financial service platform, improving the open financial cooperation system, and deepening cross-border financial supervision collaboration across provinces, to promote the implementation of the two core financial functions of “financing” and “settlement”, and support the high-quality development of the new land and sea corridors in the west.

In the next step, the People's Bank of China and the Chongqing Municipal People's Government will work with relevant departments to promote the implementation of the various measures of the “Opinion”, give full play to the advantages and roles of large financial service channels, large logistics, large industries, large platforms, and large markets, and help form a new pattern of “domestic and foreign linkage, mutual assistance between east and west”.

Opinions on financial support to speed up the construction of new land and sea corridors in the west

In order to thoroughly implement the spirit of General Secretary Xi Jinping's important speech on the construction of new land and sea corridors in the west and the major decisions and arrangements of the Party Central Committee and the State Council on speeding up the construction of new land and sea corridors in the west, give full play to the advantages and roles of major financial service channels, large logistics, large industries, large platforms and large markets, support the construction of a land and sea linkage channel connecting the Silk Road Economic Belt and the 21st Century Maritime Silk Road, and help form a new pattern of “domestic and foreign linkage and mutual aid between east and west”.

I. General Requirements

Guided by Xi Jinping's ideology of socialism with Chinese characteristics in the new era, comprehensively implement the spirit of the 20th and 20th CPC Central Committee, the Central Economic Work Conference, and the Central Financial Work Conference, and earnestly implement the spirit of General Secretary Xi Jinping's series of important speeches on the construction of new land and sea corridors in the west, build a new development pattern, focus on the main development line of “channel with logistics, logistics with economy and trade, economy and trade belt industry”, coordinate financial development and security, give full play to the two core functions of “financing” and “settlement” Orientation, multi-span collaboration, Adapt to local conditions, integrate development, deepen financial reform, innovation and opening-up, comprehensively improve the financial service system of the new land and sea corridors in the west, significantly enhance the ability to allocate financial elements across provinces (regions, cities), adhere to the bottom line of risk prevention, support the high-quality development of the new land and sea corridors in the west, drive a high level of openness in the inland region, better serve the whole country, link to ASEAN and integrate into the world, and provide strong support for Chinese-style modernization.

2. Improve the financial organization collaboration system and improve the quality and efficiency of channel financial services

(1) Increase overall support for financial resources. Financial institution heads (headquarters) are encouraged to establish special service mechanisms to give preference in terms of customer access, credit approval, internal fund transfer pricing, performance assessment, etc., and support their branches to develop characteristic and differentiated products in line with actual needs. Financial institution heads (headquarters) are encouraged to explore integrated credit granting mechanisms for provincial (district, city) branches along the route around the new land and sea corridors in the west, and promote the flow of financial resources across provinces. Eligible financial institutions are encouraged to establish joint credit mechanisms and carry out syndicated loans.

(2) Strengthen domestic and external financial linkages. Financial institution headquarters (headquarters) are encouraged to optimize the layout of overseas institutions, establish a “one-point access” joint service network for domestic and foreign branches, and strengthen coordination in terms of customer due diligence, convenient settlement, and joint credit granting. Support provincial (district, municipal) corporate banks along the route and financial institutions in Southeast Asia, Central Asia, Hong Kong and Macao to strengthen brokerage settlement and settlement cooperation. Support local legal banks that are in a position to do so to strengthen resource allocation and enhance channel financial service capabilities. Support financial institutions from various provinces (districts and municipalities) along the route to participate in the Western Land and Sea New Corridor Financial Service Consortium, and link domestic and foreign countries to efficiently and accurately match the supply and demand of cross-border trade, investment and financing.

(3) Introducing overseas financial institutions and organizations. Support eligible banks in ASEAN, Hong Kong and Macao to develop financial services in provinces (districts and municipalities) along the route through the establishment of new legal entities, branches, and franchised institutions. Support international financial organizations to set up special working groups, business development centers, and operation management centers in provinces (districts and municipalities) along the route. Support international financial centers and eligible overseas exchanges to establish representative offices in China in the provinces (districts and cities) along the route.

3. Build a high-quality financial communication system to serve the construction of large channels, large logistics, large industries, large platforms, and large markets

(4) Guarantee the supply of capital for channel infrastructure construction. Focus on channel infrastructure construction, increase support for various financial institutions, and make good use of diversified financing channels such as corporate credit bonds and real estate investment trusts (REITs) and diversified financial products such as project loans to meet the reasonable financial needs of different types of construction projects and operators of diverse projects at different stages of development. The Western Land and Sea New Corridor Fund was established in Chongqing to support the construction of infrastructure and industrial parks along the route. Explore policy support such as equity conversion for stock channel infrastructure project debt in accordance with the principles of marketization and legalization of the rule of law. Seek support from strategic resources such as the Asian Development Bank, the Asian Infrastructure Investment Bank, and the Silk Road Fund to encourage the development of hybrid financing.

(5) Deepen the innovation of exclusive financial products in the field of channel logistics. Increase financial support for provinces (districts and municipalities) along the route, and encourage banks to provide reasonable financing and bill discount support to eligible micro, small and medium-sized logistics enterprises. Increase credit support for the development of logistics enterprises. Encourage banks to keep up with logistics financing needs, innovate credit products, and promote comprehensive credit and pay-as-you-go loan models. Deepen the railway transport document financial service pilot project in line with local needs, support all relevant parties to explore the use of agreements to ensure the uniqueness and portability of transport documents as proof of delivery, and strengthen cargo control throughout the process. Promote legal support for the property attributes of railway and multimodal transport documents. Support the accelerated development of “one single system” financial insurance services for multimodal transport, encourage banks, insurance companies, etc. to develop more financial products and services that meet the development needs of the shipping industry, and support the use and improvement of shipping insurance, port and shipping financial derivatives, etc. to enhance the comprehensive financial service capabilities of modern ports. Encourage the development of ship financial leasing business.

(6) Optimizing financial special services for channel industrial clusters. Financial institutions are encouraged to support provincial (district, city) pillar, characteristic, and strategic emerging industries and digital industry clusters along the route to accelerate development, innovate a comprehensive credit service system based on channel industrial parks, and support the standardization of industrial chain supply chain finance services. Make full use of the People's Bank of China's unified registration and publicity system for real estate financing, expand the movable property and rights guarantee financing business, and promote credit models such as accounts receivable, franchises, orders, and warehouse receipt financing. Encourage financial institutions to explore the development of consumer finance in ASEAN countries and support export sales of domestic products. Support regions that are in a position to do so to carry out bonded futures delivery and standard warehouse receipt pledge financing based on crude oil, etc. under bonded supervision.

(7) Enhance the inclusiveness of financial services in the field of channel commerce. Develop special credit products suitable for small, medium and micro trade circulation enterprises, enrich the types of trade finance, simplify business processes and procedures, and reduce financing costs for commercial and trade enterprises. Core commercial and trade circulation enterprises are encouraged to confirm accounts receivable through the People's Bank of China's accounts receivable financing service platform to support upstream enterprise financing. Support border crossings in Yunnan, Guangxi, Inner Mongolia, Tibet and Xinjiang to carry out remittance payment services for border people's mutual market trade agents, strengthen interdepartmental collaboration, and promote information sharing throughout the entire chain of mutual market trade transactions, settlement, and customs declaration.

4. Promote institutional reform and innovation, and optimize the facilitation system for fund settlement

(8) Facilitate cross-border trade settlement. Eligible banks are supported to handle real and compliant trade in goods and services settlements for high-quality enterprises in accordance with the principle of “understanding customers, understanding business, and due diligence”. Support eligible banks to handle service trade advance and apportionment services for high-quality enterprises. Support new trade formats such as market procurement trade methods and cross-border e-commerce to facilitate cross-border settlement in local and foreign currencies. Eligible banks are encouraged to independently handle new types of offshore international trade cross-border fund settlement services for high-quality enterprises, such as new types of offshore transfer transactions, global procurement, outsourced processing, and overseas purchases of goods for contracted projects.

(9) Facilitate cross-border investment and financing. Launch high and low versions of the multinational companies' local and foreign currency integrated capital pool business pilot projects in regions where conditions are available. Simplify foreign exchange registration procedures for capital projects, allow eligible non-financial enterprises to process foreign exchange registration directly with banks in eligible regions, and support foreign-invested enterprises to reinvest domestically from registration. Make good use of the policy of easing the size limit on the upfront costs of foreign direct investment (ODI). Facilitate the payment and use of equity transfer funds under domestic reinvestment and funds raised from overseas listings by foreign-invested enterprises. Support the facilitation of cross-border financing for eligible high-tech, “specialized and innovative” and technology-based SMEs. Support banks to handle capital project business through online review of electronic documents.

(10) Expand the cross-border use of RMB. Strengthen bilateral monetary cooperation with countries in Southeast Asia and Central Asia to create support conditions for the cross-border use of RMB. Further promote pilot RMB settlement facilitation projects for higher-level trade and investment, and support foreign trade enterprises to make more use of RMB for settlement. Support investors from ASEAN countries to invest in RMB and reinvest domestically. Encourage commodity transactions to be settled in RMB. Support banking financial institutions to transfer RMB banknotes across borders. Support banks to use RMB for denomination and settlement when carrying out cross-border financing, cross-border guarantee, and cross-border asset transfer services. Support eligible provincial (district, city) corporate banks along the route to join the RMB cross-border payment system. Give full play to the advantages of digital yuan payment and settlement, low cost, programmability, etc., study the use of digital yuan smart contracts to create innovative solutions, and explore the feasibility of expanding the application of digital yuan in scenarios such as channel payment settlement, financing, and tax refund. Research and expand the scope of cross-border applications of digital yuan, and use bilateral and multilateral cross-border business models to reduce costs and increase the efficiency of cross-border payments through channels.

5. Build a digital financial service platform to support the digital intelligent transformation of channel finance

(11) Build a platform for “smart land and sea integration between the central bank and the western part of the central bank”. Relying on the application platform of the People's Bank of China, we will build a comprehensive financial service platform covering provinces (districts and cities) along the route, promote innovative point evaluation, and create a one-stop comprehensive financial service platform integrating functions such as financial policy promotion and product launch, accurate banking and enterprise connection, financial data statistics, and financial service performance evaluation.

(12) Promote efficient connections between banks and enterprises. A bank-enterprise financing matchmaking function was launched on the “Central Bank's Western Land and Sea Smart Finance” comprehensive financial service platform to publish a database of major channel projects, a list of key logistics enterprises and logistics parks, and a list of channel-related enterprises to support information sharing between government, banks and enterprises. Establish online processing zones for financial institution products and services to promote efficient and accurate matching and one-stop processing of financing needs and financial supply.

(13) Strengthen information trust enhancement and empowerment. Promote the integration of the “Central Bank's Western Land and Sea Intelligent Integration” platform with platforms such as a “single window” for international trade, a new digital land and sea channel platform, and provincial (district, city) government service platforms along the route, and strengthen the integration of information such as cargo flow and capital flow across provinces (districts and cities). Financial institutions are encouraged to widely use the national financial flow credit information sharing platform and financing credit service platform for micro, small and medium-sized enterprises to obtain efficient and convenient credit information and enhance financing services for micro, small and medium-sized enterprises. Build and improve the China-ASEAN cross-border credit reporting service platform, promote the use of the China-ASEAN cross-border trade connectivity platform, and enhance the convenience of enterprises in cross-border settlement and financing.

(14) Promoting shared cross-border financial service platforms. Use the functions of various application scenarios of the cross-border financial service platform of the State Administration of Foreign Exchange to provide convenient financing and settlement for channel enterprises. All provinces (districts and cities) are encouraged to take into account regional realities, innovate special application scenarios adapted to the needs of channel development, optimize the new land and sea corridor scenario in western Chongqing, the Guangxi Beibu Gulf “port and aviation finance” scenario, the China-Europe train (Xi'an) scenario, etc., and explore the replication, promotion and sharing of local special application scenario functions in provinces (districts and cities) along the route.

6. Improve the open financial cooperation system and enhance the leading momentum of channel financial openness

(15) Establish and improve financial cooperation and exchange mechanisms. Support Chongqing to establish a new land and sea channel financial service center to coordinate financial service cooperation with ASEAN countries. Support Guangxi to build a China-ASEAN financial center, Chongqing to build a Raffles International Financial Cluster, Chengdu to build a digital platform for cross-border investment and financing, and Zhanjiang, Guangdong to build a platform for cross-border investment, financing and industrial cooperation. Support the normalization of international conferences such as the China-Singapore Financial Summit, and encourage inviting financial management departments and financial sector institutions from ASEAN countries to discuss financial openness, innovation and development.

(16) Explore the interconnection of domestic and foreign financial markets. Support eligible banks to issue cross-border loans to ASEAN companies or projects in compliance with regulatory requirements and macroprudential frameworks. Strengthen development links between provinces (regions, cities) along the route and the Guangdong-Hong Kong-Macao Greater Bay Area, and support enterprises to finance in Singapore and Hong Kong in accordance with the law. Deepen the Qualified Foreign Limited Partner (QFLP) pilot.

(17) Explore international cooperation in digital finance. Support provinces (regions and municipalities) along the route to participate in multilateral central bank digital currency bridge projects and promote the use of central bank digital currencies for cross-border payments with Thailand, Hong Kong, the United Arab Emirates, Saudi Arabia, etc. Support the exploration and promotion of digital yuan cross-border payment pilot projects between the Mainland and Singapore. Support provinces (regions and municipalities) that are in a position to do so along the route to build cross-border e-commerce digital service platforms, connect with digital cross-border e-commerce and trade platform companies in Singapore and other countries, and enhance cross-border e-commerce service capabilities.

(18) Strengthen internal and external cooperation in green finance. Support the provinces (districts and municipalities) along the route to jointly study green finance standards. Improve the China-Singapore Green Finance Working Group mechanism and strengthen cooperation in the formulation and application of green finance standards, green finance products, and fintech to support green finance. Introduce investors from Southeast Asia, Hong Kong and Macau to support the construction of green low-carbon funds, green industries, zero-carbon parks, and ecological and environmental protection projects. Investors in Southeast Asia, Hong Kong and Macau are encouraged to invest in green bonds issued by financial institutions or enterprises in provinces (districts, cities) along the route. Cooperate with Southeast Asia, Hong Kong and Macao on the application of transition finance standards to support the development of a low-carbon economy in the channel sector. Encourage credit rating agencies to carry out green bond rating services and support eligible financial leasing companies to issue green bonds.

7. Deepen cross-border financial supervision collaboration across provinces and establish a channel financial risk prevention and control system

(19) Improve financial supervision collaboration across provinces. Provinces (districts and municipalities) along the route establish financial supervision linkage mechanisms adapted to channel construction, promote data circulation and sharing, strengthen penetrating supervision, effectively carry out territorial financial supervision duties, and ensure that risk prevention and control capabilities are compatible with financial reform and innovation. Strengthen local government debt risk monitoring, resolutely curb new hidden debts, and actively and steadily resolve existing hidden debts. Strengthen financial supervision information exchange, regular meetings, risk assessment, and promote the transfer of financial risk leads and cross-provincial collaboration. Strengthen channel financial data security management.

(20) Strengthen the monitoring, prevention and control of cross-border financial risks. Strengthen the monitoring, analysis and early warning of cross-border capital flows, promptly alert financial risks, identify, warn, expose, and deal with risks early, and prevent the risks of cross-border capital flows in an environment where channels are expanded. Strengthen cross-border financial supervision cooperation, establish communication mechanisms with financial management departments in ASEAN countries, coordinate and resolve issues of cross-border financial development and risk prevention and control, and explore cooperation to carry out cross-border financial enforcement.

(21) Regulate the financial order. Give full play to the cooperative supervisory role of foreign exchange management in provinces (districts and municipalities) along the route, deepen cross-regional and cross-departmental foreign exchange enforcement cooperation, strengthen the supervision of foreign exchange operations throughout the chain, strictly crack down on illegal foreign exchange activities such as foreign exchange evasion, illegal arbitrage, and illegal foreign exchange trading, strengthen cross-regional cooperation on anti-money laundering and anti-terrorist financing, and resolutely prevent illegal violations of financial support policies through channels.

8. Safeguard measures

(22) Strengthen organizational coordination. Under the guidance of relevant departments, branches of the People's Bank of China in the provinces (districts and municipalities) along the route have jointly established a financial services linkage cooperation mechanism for the new land and sea corridors in the west to strengthen policy, information, and data sharing, and coordinate solutions to financial service difficulties and problems. Support branches of the People's Bank of China in the provinces (districts and municipalities) along the route to establish new land and sea channels for financial services with relevant local government departments and other financial supervisory agencies, strengthen policy coordination and information sharing in other areas such as finance and finance, industry, foreign trade, commerce, etc., and enhance development synergy. Financial institution heads (headquarters) should increase support for provinces (districts and municipalities) along the route in terms of internal work organization, resource coordination, reform, innovation and empowerment.

(23) Optimizing policy packages. Strengthen financial policy coordination among provinces (districts and municipalities) along the route, and relevant departments grant reform and innovation initiatives and support policies to one of these regions. On the premise that market conditions are in place, risk control capabilities match, and approval is obtained, other provinces (districts, cities) can promote replication. Provincial (district, municipal) governments along the route have established and promptly updated “two banks and one list”, such as a database of major channel projects, a list of key logistics enterprises and logistics parks, and a list of channel-related enterprises, taking into account regional realities, to support accurate connections between banks and enterprises. Strengthen fiscal and financial linkages, and encourage and support regions in a position to do so to explore financing and financial innovation in key areas of channel development, weak links, etc. in the form of financing interest rates and risk sharing.

(24) Strengthen closed-loop management. Explore the establishment of dynamic monitoring, reporting, and evaluation mechanisms for financial service channels, track and evaluate the service effectiveness of each province (district, city), and promptly replicate and promote experiences and practices to other provinces (districts, cities) along the route and other regions of the country. Explore and evaluate the quality and efficiency of financial institution service channels, incorporate evaluation results into assessment mechanisms such as credit policy-oriented evaluations, bank foreign exchange compliance and prudential management evaluations, and guide more financial resources to support faster channel construction.

This article was selected from the official website of the “People's Bank of China”. Zhitong Finance Editor: Jiang Yuanhua.