China.org.cn | October 15, 2024
Phoenix TV:
At present, cross-border capital flows are becoming increasingly frequent. Could you provide details on the reform measures worthy of attention in the next step of high-level opening-up for the capital account? Thank you.
Li Hongyan:
Thank you for your question. Mr. Xiao Sheng will answer this question.
Xiao Sheng:
Thank you for your attention to the issue of the capital account's opening-up. As Ms. Li Hongyan just mentioned, in recent years SAFE has been continuously advancing reforms in the management of foreign exchange for the capital account to better facilitate cross-border capital operations for cross-border entities. Next, SAFE will continue to implement the guiding principles of the third plenary session of the 20th CPC Central Committee, adhere to the principle of seeking progress while maintaining stability, promote stability through progress and further deepen the reforms of foreign exchange management for the capital account, thus continuously improving the quality of the capital account's opening-up. We will focus on the following four areas:
First, we will scientifically manage the timing and efficiency of the capital account's opening-up. We will strategically coordinate and orderly advance foreign exchange management reforms in areas such as direct investment, cross-border financing and cross-border security investment. At the same time, we will focus on the systematic integration of reforms and continue to promote integrated pilot policies to facilitate cross-border investment and financing. In the first eight months of this year, pilot projects for high-level opening-up of cross-border investment and financing have benefited more than 1,400 enterprises, supporting high-quality development of the real economy.
Second, we will lead the overall progress through key points to intensify the reform for foreign exchange management of the capital account. We will promote and improve integrated management of overseas lending in both foreign and domestic currencies and support enterprises in both "going global" and "bringing in" investments in an orderly manner. We will steadily advance the upgrading and expansion for the capital pool business of multinational companies, further improve the operational efficiency for the cross-border funds of multinational companies and support the development of headquarters economy. By the end of August this year, over 1,000 multinational corporate groups have participated in capital pool business, covering 18,000 member enterprises. At the same time, we will work with relevant departments to steadily expand the opening-up of financial markets, improve the management of funds for domestic enterprises' overseas direct listings, optimize the Qualified Foreign Institutional Investor (QFII) system and orderly advance the Qualified Domestic Institutional Investor (QDII) program. In the first half of this year, a total of $2.27 billion QDII quotas have been issued.
Third, we will support the opening-up and development of key regions. We will provide institutional opening-up to serve national and regional development strategies, such as supporting multinational companies in establishing global or regional treasury centers in Shanghai, supporting the Guangdong-Hong Kong-Macao Greater Bay Area in piloting various innovative policies as well as steadily advancing the construction of the Hainan Free Trade Port and cooperation zones in Hengqin and Qianhai. At the same time, we will provide precise support for regional and industrial development. Based on the earlier implementation of pilot programs such as the "Research Funding Facilitation Policy" in Hetao and "Qianhai Hong Kong Enterprise Loans " in Qianhai, both located in Shenzhen, we will further enhance support for the facilitation of cross-border investment, financing and fund exchange.
Finally, in accordance with deployment requirements of "achieving positive interaction between high-quality development and high-level security," SAFE will build and improve a fully processed, full cycle and fully linked capital account opening-up and risk prevention and control system, firmly securing the bottom line to ensure that systemic financial risks do not occur. Thank you!