China will introduce a number of supportive policies to support foreign-invested companies and the use of foreign funds, which will help stabilize employment, enterprises and markets, said an official of China's central bank on Wednesday at the opening ceremony of the 2025 Lujiazui Forum in Shanghai.
With the theme of "Financial opening up and cooperation for high-quality development in a changing global economy," the two-day Forum officially opened on Wednesday morning, gathering policymakers, regulators, and financial leaders from over ten countries and regions.
Zhu Hexin, deputy governor of the People's Bank of China (PBOC) and director of the State Administration of Foreign Exchange, said that to support the development of foreign trade enterprises, relevant departments will push forward the reform of foreign exchange business management, and a series of facilitation policies will be implemented, including expanding the pilot program of high-level opening up of cross-border trade and optimizing the foreign exchange settlement of comprehensive foreign trade service enterprises.
At the same time, he noted, measures will be taken to facilitate cross-border investment and financing.
"Facilitation policies will be implemented nationwide, such as supporting scientific research institutions to attract and utilize foreign capital, further facilitating cross-border financing for sci-tech enterprises, and reducing the negative list of capital project income and use, to better support international economic and trade cooperation and personnel exchanges. We will promote the policy of integrated domestic and foreign currency cash pooling for multinational corporations across the country to facilitate their collection and use of funds. We will carry out a pilot program for green foreign debt to encourage qualified enterprises to borrow foreign debt for green projects. We will also improve the management of funds for overseas listings of domestic enterprises, unify the domestic and foreign currency management policies, and facilitate the transfer of raised funds back to China for use. In the near future, a new batch of investment quotas for qualified domestic institutional investors (QDII) will be issued to orderly meet the reasonable needs of domestic entities for overseas investment," Zhu said.
In addition, a series of innovative foreign exchange policies will be implemented in the pilot free trade zones, including 10 facilitation policies such as optimizing new international trade settlement and expanding the pilot program of qualified foreign limited partners (QFLP), to actively support the upgrade of the pilot free trade zones, according to the official.
China to take measures to facilitate foreign investment: PBOC official
