New pol­icy to ben­e­fit in­vest­ment

Over­seas em­ploy­ees in FTZ get green light to ac­cess lo­cal bank­ing ser­vices

China Daily (Canada) - - VIEWS - ByWUYIYAO in Shang­hai wuyiyao@chi­nadaily.com.cn

China’s cen­tral bank will al­low qual­i­fied in­ter­na­tional em­ploy­ees work­ing in China (Shang­hai) Pi­lot Free Trade Zone to open over­seas per­sonal free trade ac­counts, as part of a se­ries of re­forms en­cour­ag­ing in­no­va­tion and cross-bor­der in­vest­ment.

The mea­sure, an­nounced at a news con­fer­ence in Shang­hai on Wed­nes­day by the Peo­ple’s Bank of China, is the first of its kind al­low­ing in­ter­na­tional staff work­ing in the city to have easy and di­rect fi­nanc­ing ser­vices through bank ac­counts at lo­cal lenders.

Af­ter the mea­sure be­came ef­fec­tive on Wed­nes­day, qual­i­fied for­eign­ers could ac­cess cross-bor­der fi­nan­cial ser­vices and do not have to use over­seas ser­vices as they did be­fore.

The cen­tral bank said the move was aimed at en­cour­ag­ing in­no­va­tion, and cross-bor­der in­vest­ment and trade in a bid to make trade more ac­tive, and ex­tend the func­tions of free trade ac­counts from cor­po­rate fi­nanc­ing to per­sonal fi­nanc­ing.

Wang Xin­hao, Shang­hai Pudong De­vel­op­ment Bank’s Shang­hai branch head, said that the new pol­icy en­ables com­mer­cial banks and fi­nanc­ing ser­vice providers to meet de­mand from high-level for­eign em­ploy­ees in the city.

“This pol­icy will make cross-bor­der per­sonal fi­nanc­ing ser­vices more ac­tive, a long-term ben­e­fit for fi­nan­cial ser­vices providers in China,” saidWang.

Steve Ma, an ex­pert in the food and bev­er­age sec­tor and a se­nior ex­ec­u­tive with a multi­na­tional in Shang­hai, said that he ap­plauds the new pol­icy be­cause it will en­able him to bet­ter uti­lize the fi­nan­cial ser­vices of lo­cal banks, in­clud­ing mak­ing fi­nan­cial plans for his fam­i­lies, such as wealth man­age­ment, in­sur­ance and in­vest­ment in fi­nan­cial prod­ucts.

The reg­u­la­tor also an­nounced a se­ries of other mea­sures to deepen open­ing up and re­form as Shang­hai Free Trade Zone has been pi­lot­ing more poli­cies which are likely to be adopted na­tion­wide once they prove suc­cess­ful and ben­e­fi­cial to the coun­try’s economic and so­cial de­vel­op­ment.

The mea­sures in­cluded al­low­ing pri­vate eq­uity funds and projects in the free trade zone to raise cap­i­tal in the zone as well as over­seas and use the pro­ceeds for cross-bor­der in­vest­ment.

Multi­na­tional cor­po­ra­tions are al­lowed to es­tab­lish on­shore cross­bor­der ren­minbi cap­i­tal pools by us­ing Shang­hai Free Trade Zone ac­counts to man­age their ren­minbi hold­ings glob­ally, ac­cord­ing to the cen­tral bank.

“A bal­anced in­flow and out­flow of cap­i­tal in the Shang­hai Free Trade Zone will ben­e­fit China’s fi­nan­cial sta­bil­ity,” said Zhou He­hua, Bank of China’s Shang­hai branch head.

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