Author: Bowen

On January 22, 2025, the official website of the Central People's Republic of China showed that the People's Bank of China, The Ministry of Commerce, the State Administration of Financial Supervision, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange jointly issued the "Opinions on Promoting Institutional Opening in the Pilot Free Trade Zone (Port) in Conditional Free Trade Zones by Aligning with International High Standards", starting a new wave of financial opening up.

Opinions include supporting the optimization of the "Cross-border Wealth Management Connect" in the Guangdong-Hong Kong-Macao Greater Bay Area 20 measures including pilot projects and allowing foreign financial institutions to provide new financial services. Among them, we focus on three points:

Allow Chinese-funded and foreign-funded institutions to develop new financial services, that is, they are not provided in my country, but have been provided and used in other regions or regions. Regulated financial services;

Continue to optimize the "Cross-border Wealth Management Connect" pilot in the Guangdong-Hong Kong-Macao Greater Bay Area to support mainland residents in the Guangdong-Hong Kong-Macao Greater Bay Area to purchase eligible investment products sold by Hong Kong and Macao financial institutions; expand the scope of participating institutions and eligible investments Product scope;

On the premise of true compliance, all transfers related to foreign investor investment in pilot areas that are true and compliant can be freely remitted, Send money without delays. Such transfers include: capital contributions; profits, dividends, interest, capital gains, royalties, management fees, technical guidance fees and other fees.

Under the new law, virtual asset-related products may be included in cross-border financial management; at the same time, it creates new possibilities for the combination of blockchain technology and traditional finance. Especially in the field of RWA, cooperation between foreign financial institutions and blockchain companies is expected to become an important way for domestic companies to expand financing channels.

The following is the original text of the opinion:

In order to thoroughly implement the spirit of the Central Financial Work Conference, implement the " Several Measures to Promote Institutional Opening in Conditional Free Trade Pilot Zones and Free Trade Ports by Aligning with International High Standards and Promoting Comprehensive Alignment with International High Standards Economic and Trade Rules (Shanghai) Pilot Free Trade Zone High-level Institutional Opening-up Overall Plan", the following opinions are hereby put forward on pilot projects in the financial field to align with international high standards and promote institutional opening-up in qualified free trade pilot zones and free trade ports.

(Including Shanghai, Guangdong, Tianjin, Fujian, Beijing Free Trade Pilot Zone, Hainan Free Trade Port and other regions, the Party Central Committee and the Academy of Sciences have made clear arrangements and undertaken the important task of opening up to the outside world. Hengqin Guangdong-Macao Deep Cooperation Zone, Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, Guangzhou Nansha and other important cooperation platforms open to Hong Kong and Macao, hereinafter collectively referred to as the pilot areas)

Allow foreign-funded financial institutions to carry out similar new projects as Chinese-funded financial institutions Financial Services

(1) The new financial services referred to in this opinion refer to financial services that are not provided within the territory of my country, but have been provided and regulated in other regions or regions.

The development of new financial services follows the principle of internal and external consistency. Except for specific new financial services involving safety, financial security and other factors, if Chinese-funded financial institutions are allowed to carry out, Foreign financial institutions in pilot areas should be allowed to carry out.

The specific development form of new financial services can be a licensing form or a pilot form.

(2) If a new financial service is carried out in the form of a license, the financial management department may determine the institution to carry out the new financial service in accordance with the principle of internal and external consistency. type and nature of the institution, and requires a license to perform this service.

The financial management department shall make a decision within a reasonable period and may not grant permission only for prudent reasons.

(3) If a new financial service is launched in the form of a pilot, qualified foreign financial institutions should be actively supported to participate, and foreign financial institutions must not be excluded from the pilot outside the range.

If the pilot institutions do not include foreign financial institutions, relevant explanations with sufficient reasons should be made.

Decision will be made within 120 days on the application of financial institutions to provide relevant services

(4) In accordance with the principle of internal and external consistency, foreign financial institutions, investors of overseas financial institutions, and cross-border For complete and legally required applications submitted by overseas financial business providers for providing financial services in the pilot areas, a decision will be made within 120 days from the date of acceptance, and the applicant will be notified in a timely manner.

If a decision cannot be made within 120 days, an explanation should be communicated to the applicant in a timely manner. If the time limit specified by laws or administrative regulations exceeds 120 days, a decision shall be made within the time limit.

(5) Optimize administrative approval services related to securities and futures financial services.

Revise relevant approval systems and administrative licensing service guidelines and other documents, and The approval time limit for domestic and foreign-funded securities companies (including professional subsidiaries of securities companies), public fund management companies, and futures companies established in the pilot areas has been shortened from 180 days to 120 days.

(6) Optimize the administrative approval services related to banking and insurance financial services. Refine the approval work process, optimize the approval services, and increase the approval time limit for foreign-funded bank business institutions and foreign-funded insurance institutions to be established in pilot areas from 180 days shortened to 120 days

Supports cross-border purchase of certain types of overseas financial services in accordance with the law

(7) According to my country's commitment to join the World Trade Organization (WTO), the areas currently open under cross-border delivery are: the banking industry allows cross-border provision and transfer of financial information, financial data processing and related software; consulting , intermediary and other ancillary services

The insurance industry is allowed to provide reinsurance, international shipping, air transportation and transportation insurance, large commercial insurance brokerage, international shipping, air transportation and transportation insurance brokerage. and reinsurance brokers

(8) On the premise of true compliance, enterprises and individuals in the pilot areas can handle cross-border fund settlements such as renewal, claim settlement, and surrender of current cross-border insurance policies in accordance with the law. < /p>

(9) Continue to optimize the "Cross-border Wealth Management Connect" pilot in the Guangdong-Hong Kong-Macao Greater Bay Area to support mainland residents in the Guangdong-Hong Kong-Macao Greater Bay Area to purchase Hong Kong and Macau financial services through Hong Kong and Macao financial institutions Qualified investment products sold by institutions. Expand the scope of participating institutions and eligible investment products.

(10) Set up a Macao financial services area in the Macao New Neighborhood of the Hengqin Guangdong-Macao Deep Cooperation Zone, and explore the use of RMB and Macao products on the premise of complying with laws and regulations. Provide relevant financial services to residents of Macau’s new neighborhoods under the Yuan-dual currency acquiring model.

Facilitate the inward and outward remittances related to investment by foreign investors

(11) On the premise of true compliance, allow pilot areas to truly comply with regulations, and All transfers related to investments by foreign investors can be remitted freely to and from abroad without delay. Such transfers include: capital contributions; profits, dividends, interest, capital gains, royalties, management fees, technical guidance fees and other fees;

All or proceeds from the sale of part of an investment, liquidation of all or part of an investmentIncome from capital; payments made under contracts, including loan agreements; compensation or compensation obtained in accordance with the law; payments arising from dispute resolution.

(12) Within the framework of macro-prudential management, continue to improve the convenience of full-process transactions for foreign investment in pilot areas, guide commercial banks to strengthen business development review, and confirm corresponding funds Receipt and payment have a real and legitimate transaction basis.

(13) Support pilot areas to include more qualified foreign-invested enterprises into the coverage of trade and investment facilitation pilots, and improve the level of settlement facilitation for foreign-invested enterprises .

(14) Build a multi-functional free trade account system in the Hainan Free Trade Port and the Hengqin Guangdong-Macao Deep Cooperation Zone to improve the level of free and convenient cross-border capital flows .

Improve arrangements for the cross-border flow of financial data

(15) Facilitate and standardize the cross-border flow of data from financial institutions in pilot areas, within the framework of the cross-border data transmission security management system , explore the formation of a unified compliance standard for cross-border flow of financial data, clarify the rules for cross-border flow of financial data, and allow financial institutions in pilot areas to transmit data required for daily operations overseas in accordance with the law.

Management measures may be taken for cross-border transmission of financial data to protect data security and personal information security or based on prudent considerations. Explore the establishment of a "whitelist" system for cross-border circulation of financial data, and include data in pilot areas that have been studied well and approved by relevant departments into the "whitelist".

Based on the cross-border data transmission needs of financial institutions in the free trade pilot zone, the research needs to include data export security assessment, personal information export standard contract, and personal information protection certification management scope. data list to efficiently carry out cross-border security assessments of important data and personal information in the financial field.

(16) Formulate rules and standards for data classification and grading in the financial field, study and issue a catalog of important data in the financial field, and urge and guide financial institutions to carry out important data identification and declaration, and data export. Security assessment declaration and promotion of work related to cross-border security protection of financial data.

(17) Support financial institutions and payment service providers in pilot areas to research and launch international advanced standards for electronic payment systems, and carry out cross-border authentication and electronic identification of digital identities, Support the introduction of overseas electronic payment institutions in accordance with laws and regulations, and study and improve a digital identity authentication system that is in line with international standards.

(18) For imports and distributionTo sell, sell or use mass-market financial software (excluding software used for critical information infrastructure in the financial field) and products containing such financial software, relevant departments and their staff are not allowed to transfer or acquire relevant financial software owned by enterprises or individuals. Software source code is required as a condition.

Comprehensively strengthen financial supervision and effectively prevent and resolve financial risks

(19) Improve the risk monitoring, early warning, prevention and resolution system.

Strengthen the identification of major financial risks and the prevention of systemic financial risks in pilot areas, strengthen cross-departmental financial regulatory coordination in pilot areas, and strengthen cross-border receipts and payments Collect, monitor and use business data, intensify the crackdown on illegal financial activities, and improve the emergency response mechanism for financial risks.

(20) Establish a cross-border dispute settlement mechanism that is in line with international rules.

Improve the system for protecting the rights and interests of financial consumers, support the development of international arbitration and mediation services in pilot areas, and explore the provision of diversified and international resolution mechanisms for cross-border disputes. Create a "commercial mediation + international arbitration" one-stop, diversified and international financial dispute resolution platform.

This article involves measures to open market access and separate preferential treatment for Hong Kong and Macao services and service providers, and is included in the "Relationships on Building a Closer Economic Partnership" between the Mainland and Hong Kong and the Mainland and Macao. Implemented under the framework of the Economic Partnership Arrangement (CEPA). All relevant departments and pilot areas must strengthen organization and implementation, conduct effectiveness evaluations, summarize experiences in a timely manner and replicate and promote them.