Elephant News:

At the Lujiazui Forum, the State Administration of Foreign Exchange mentioned a package of incremental measures covering areas such as cross-border direct investment. Could you briefly explain them? And when are they expected to be introduced? Thank you.

Li Bin:

I'd like to invite Mr. Xiao to answer this question.

Xiao Sheng:

Thank you for your questions. Since 2023, SAFE has introduced a package of measures to facilitate cross-border investment and financing for three consecutive years, with nearly 20 measures rolled out in total. These include facilitating the payment and use of funds by foreign-invested enterprises, supporting cross-border financing for science and technology innovation enterprises, shortening the negative list governing the use of capital account receipts, and expanding the areas where banks can process foreign exchange registration. The measures have significantly improved processing efficiency. Some procedures that previously took three working days can now be completed the same day, while some companies only need to submit half as many documents for review. The measures have also strengthened support for the real economy. In particular, policies facilitating cross-border financing have helped enterprises that use special and sophisticated technologies to produce novel and unique products and technology-based small- and medium-sized enterprises (SMEs) broaden financing channels and reduce financing costs.

Since the beginning of 2026, in response to new circumstances and developments, SAFE has acted on the decisions and arrangements of the CPC Central Committee and the State Council. After extensive consultations with banks, businesses and other stakeholders, and in line with progress in high-standard opening up of the capital account, it plans to introduce another package of measures to further facilitate cross-border investment and financing. These measures fall into three main categories:

First, we will further facilitate direct investment. To help foreign-invested enterprises improve investment efficiency, we will further streamline procedures for foreign exchange settlement and payments under the capital account, supporting efforts to attract, stabilize, and improve foreign investment for better performance. For Chinese companies investing abroad, we will simplify, in an orderly manner, the review process for outward remittances to ensure efficient and convenient access to funds needed for normal business operations.

Second, we will further expand high-standard opening up in cross-border financing. To broaden the reach of financial services for science and technology innovation and green development, we will further extend the range of entities eligible for cross-border financing facilitation policies and roll out green external debt pilot programs nationwide. Meanwhile, we will further improve macro-prudential management policies and measures for corporate cross-border financing, helping foreign-funded enterprises hedge risks and facilitating enterprises to allocate funds across borders more flexibly.

Third, we will optimize registration procedures for capital-account transactions. Given enterprises' practical need for more convenient cross-border investment and financing, we plan to shift more registration work directly to banks and expand the range of capital-account services available online, further advancing the digitalization of foreign exchange administration and reducing the legwork of enterprises.

These reform measures will be released and implemented in accordance with regulations once the relevant procedures are completed. Thank you.