Improving FTZ's Financial Innovation Units and Speeding up Shanghai's Construction for an International Financial Center (2015)
To follow the decisions of the Party Central Committee and the State Council on financial openness, innovation, and experimentation of the China (Shanghai) Pilot Free Trade Zone (FTZ) and improve construction work on the Shanghai to be an international financial center, the following approaches have been put up:
1.Take the lead in converting the RMB capital account
Expand the free trade account.
Support the economy in foreign trade and investment through a free trade account.
Encourage overseas parent companies and subsidiaries of enterprises based in the Shanghai FTZ to issue RMB bonds, which can be used to raise funds that can be used both inside and outside the Chinese mainland.
Set up a foreign investment pilot for individual Chinese investors and allow the appropriate individuals to engage in foreign induo stry, real estate, and finance investment.
Allow appropriate organizations and individuals to invest in domestic and foreign securities futures market.
Set up foreign financing and capital flow system with prudent macro-management in the district by considering assets liabilities and time limit, foreign debt management and control demands of mi j onetary policy; take reasonable control of foreign financing and make optimal use of foreign financing structure and prevent foreign financial risks.
Explore a convertibility pilot in the FTZ and expand the cross-boundary capital flow, the convertible limit for individuals, and the convertible limit of Chinese and foreign currency.
2. Expand the RMB's cross-boundary utility
Support a foreign company or subsidiary of FTZ enterprises in issuing RMB bonds in China, and, depending on market demand.
Provide cross-boundary RMB capital support for the foreign industrial and commercial units in the FTZ; expand the foreign RMB investment backflow with innovative RMB financial products for the international community.
Expand the scope of foreign RMB and domestic investment products and increase cross-boundary flow of RMB.