A pilot program for facilitating cross-border trade settlement in Chinese currency has been extended from the Qianhai and Shekou Area of the China (Guangdong) Pilot Free Trade Zone to the entire city of Shenzhen, according to the People’s Bank of China, Shenzhen branch.
This is the first program being implemented following the directive on financial support to Guangdong-Hong Kong-Macao Greater Bay Area released by the national authorities, Shenzhen Special Zone Daily reported.
Under the program, “high-quality enterprises” can now conduct cross-border trade settlement in RMB and the usage of RMB earned from capital projects on the mainland without obtaining approval from banks beforehand. Banks will conduct random ex post verifications.
“High-quality enterprises” refer to businesses that have been legally and stably doing cross-border trade settlement for a long period of time.
The new policy can shorten service procedures and increase efficiency. On top of this, it will benefit companies conducting cross-border business activities.
Last but not least, more companies in the city are expected to benefit from the policy, said the report.