Individuals in the zone may, pursuant to regulations, handle current-account cross-border RMB receipt and payment business and conduct various cross-border investments including securities investment. Individual businessmen in the zone may, depending on business needs, provide cross-border loan to their overseas business subjects.

Financial institutions and enterprises in the zone may, pursuant to regulations, enter the securities and futures trading place to make investment and transaction. Overseas parent companies of the enterprises in the zone may, pursuant to regulations, issue RMB bonds in the domestic capital market. Enterprises in the zone may, pursuant to regulations, conduct overseas securities investment and derivatives investment business.

Enterprises, non-bank financial institutions and other economic organizations may, pursuant to regulations, borrow domestic and foreign currency funds from overseas, and conduct the hedge risk management in the zone or overseas.

Article 28 Pursuant to relevant provisions of China People’s Bank, all policy measures hammered out by the State for encouraging and supporting the expanded RMB cross-border use apply to the PFTZ.

The cross-border use of RMB under the current accounts and direct investment in the PFTZ shall be simplified. Financial institutions and enterprises in the zone may borrow RMB funds from overseas. Enterprises in the zone may, according to their business needs, conduct cross-border two-way RMB fund pool and current-account cross-border RMB concentrated receipt and payment business. The banking industry financial institutions in Shanghai areas may cooperate with eligible payment institutions in providing cross-border e-commerce RMB settlement service.

Article 29 The building of an interest-rate market-driven system is to be pushed forward in the PFTZ, with the monitoring mechanism of free trade account domestic and foreign currency funds interest rate market-driven pricing to be improved, and eligible financial institutions in the zone may have priority in issuing negotiable certificates of deposits (NCDS), with the interest-rate ceiling to be opened for foreign-currency deposit in the zone.

Article 30 A foreign exchange management system shall be established in line with the development demands of the PFTZ. The current account document check and direct investment foreign exchange registration formalities shall be simplified. External debt claims management is to be relaxed. The centralized operation management of transnational corporation’s headquarters foreign exchange fund and the foreign exchange management of foreign currency fund pool and the international trade settlement center shall be improved. The foreign exchange settlement and sale management shall be perfected to facilitate the counter transactions of bulk commodity derivatives.