China's new action plan to enhance cross-border financial services in Shanghai is set to bolster the city's heft as an international financial center, officials said, highlighting the country's determined efforts to reinforce its financial competitiveness amid a harsher external environment.
The action plan, jointly unveiled by the People's Bank of China and other authorities on Monday, is aimed at improving services concerning cross-border settlements, exchange rate hedging, financing, insurance, and comprehensive financial services.
Lu Lei, deputy governor of the PBOC, said that the plan holds significant importance in enhancing the level of internationalization of Shanghai as a financial center and strengthening its competitiveness and influence.
Emphasizing Shanghai's role as the primary platform for China's participation in international financial competition and a key driver of high-quality financial and economic development, Lu said the plan will help position Shanghai as a key hub for global capital connectivity.
Lu added the action plan will help empower Chinese enterprises going global to better integrate into global industrial chains, enhance the efficiency of enterprises to allocate funds across borders, and promote renminbi internationalization by making cross-border use of the Chinese currency more efficient.
In 2024, total cross-border renminbi receipts and payments in Shanghai reached 29.8 trillion yuan ($4.1 trillion), marking a 30 percent year-on-year increase and accounting for 47 percent of the national total, official data showed.
The move is in line with PBOC Governor Pan Gongsheng's remarks on Wednesday in Washington that China remains committed to opening-up.
Pan said that China will firmly support free trade rules and the multilateral trading system and promote economic globalization that benefits all and is inclusive while safeguarding global economic and financial stability, China Central Television reported.
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