Regulations of China (Tianjin) Pilot Free Trade Zone（3/4）
- November 16, 2017
- Posted by: Yolandy
- Category: Policy
Article 34 Cross-border RMB business innovation and development shall be promoted in TJFTZ and pilot programs in cross-border RMB use are encouraged:
(1) Under the framework of macro-prudential management of foreign debts, financial institutions and enterprises in TJFTZ are encouraged to borrow RMB funds from abroad, which shall be used in the fields in compliance with the state’s macro-control orientation, and may not be invested in negotiable securities, financial products, derivatives, or used for entrusted loans. Banking financial institutions in TJFTZ may provide cross-border short-term RMB loans to overseas banking financial institutions as required.
(2) Enterprises and financial institutions in TJFTZ are supported in issuing RMB bonds abroad as required. The funds raised may be transferred back to TJFTZ for use. Overseas parent companies of enterprises in TJFTZ may issue RMB-denominated bonds in China according to the relevant provisions.
(3) TJFTZ is supported in improving the existing trading platforms for financial assets, equities, property rights, shipping and other factors priced in RMB on the basis of making full use of the nationally unified financial infrastructure platform, and providing delivery and settlement services priced in RMB for investors in TJFTZ and abroad.
(4) Eligible enterprises in TJFTZ are supported in investing RMB funds in overseas securities and overseas derivatives according to the relevant provisions. Banking institutions in TJFTZ are supported in handling the RMB derivative business for overseas institutions in accordance with the relevant policies and provisions on the inter-bank market, among others, and the overall deployment for the opening-up of the Chinese financial market. Equity investment funds established in TJFTZ are supported in conducting the RMB foreign investment business according to the relevant provisions.
(5) Eligible multinational enterprise groups in TJFTZ may be exempt from the restrictions on operating period, annual operation revenues and the upper limit of net inflows when conducting the cross-border bilateral RMB cash pooling business.
(6) Research shall be conducted to enable domestic eligible individuals who work in TJFTZ to make various types of RMB overseas investment according to the relevant provisions. Overseas eligible individuals who work in TJFTZ may make various types of investment within China according to the relevant provisions.
Article 35 The following foreign exchange management reform shall be promoted in TJFTZ:
(1) Trade and investment facilitation shall be promoted. On the basis of authentic and lawful transactions, the process shall be further simplified. The enterprises of Category A in the class1ification grade of foreign exchange administration of trade in goods in TJFTZ are not required to open the to-be-inspected accounts for receipts from trade in goods, and are allowed to select different banks to handle foreign exchange purchase and payment in advance under current accounts. Direct investment foreign exchange registration formalities shall be simplified, direct investment foreign exchange registration shall be delegated to banks for handling, and the willingness settlement of foreign exchange capital shall be implemented for the foreign exchange capital funds of foreign-funded enterprises. The administration of foreign lending of institutions in TJFTZ shall be relaxed, and the proportion of foreign lending shall be further raised.
(2) Capital account convertibility within the quota shall be implemented. Domestic institutions registered in TJFTZ and fell outside the negative list shall independently conduct cross-border investment and financing activities, with the cross-border revenues and cross-border expenditures of each institution in each calendar year respectively not exceeding the prescribed quota. Free foreign exchange settlement and sale shall be conducted within the quota. Eligible institutions in TJFTZ shall open capital accounts-investment and financing accounts at banking institutions in Tianjin to handle the relevant business on convertibility within the quota.
(3) The macro and prudential management of foreign debts shall be promoted, and foreign debt policies of domestic institutions shall be gradually unified. Institutions in TJFTZ shall conduct self-regulation of proportion of foreign debts borrowed, and are allowed to borrow foreign debts within the quota of certain multiples of net assets, and willingness exchange settlement shall be implemented for enterprises’ foreign debts.
(4) The development of headquarters economic and settlement centers is supported. The access conditions for the centralized operation and administration of foreign currency funds of multinational companies shall be relaxed. Capital pool management shall be further simplified, and banks are permitted to examine true and legal electronic documents to handle centralized foreign exchange receipts and payments and netting settlement for enterprises.
(5) Banks are supported in developing RMB and foreign exchange derivatives services. Banking institutions registered in TJFTZ may handle RMB and foreign exchange derivatives transactions for the business in which overseas institutions can conduct spot foreign exchange settlement and sale transactions according to the relevant provisions, and include it in the administration of banks’ synthetic positions in foreign exchange settlement and sale.
Article 36 The following reform shall be promoted in TJFTZ to promote the development of the leasing industry:
(1) Leasing companies in TJFTZ are supported in conducting the leasing business concerning aircrafts, new-model vessels, marine engineering structures and large-size complete sets of imported equipment, among others, by utilizing the state foreign exchange reserves.
(2) The collection of foreign currency rents is allowed for qualified financial leasing in TJFTZ.
(3) Leasing companies are supported in conducting cross-border leasing asset transactions priced and settled in RMB by relying on the factor transaction platform in TJFTZ.
(4) Leasing companies in TJFTZ are allowed to open RMB accounts abroad for the purpose of conducting the cross-border RMB leasing business and freely transfer RMB funds between their accounts under the same name within certain quotas.
(5) The standards for the access of domestic and foreign financial leasing enterprises, approval procedures and interim and ex post supervision shall be unified, and domestic financial leasing enterprises in TJFTZ are promoted in enjoying equal benefits with the enterprises conducting the pilot program on domestic financial leasing.
Article 37 TJFTZ shall implement the loan risk compensation mechanism for medium-sized, small and micro enterprises, and encourage banks and other financial institutions to provide loans and other support to medium-sized, small and micro enterprises. Credit insurance shall be actively developed, financial institutions of the insurance sector are encouraged to provide loan guarantee insurance services to medium-sized, small and micro enterprises, the risk subsidy mechanism for loan guarantee insurance shall be established, and insurance institutions are encouraged to develop insurance products serving medium-sized, small and micro enterprises.
Article 38 Financial management departments shall strengthen the monitoring and assessment of financial risks, and establish a risk prevention mechanism adapting to the development of the financial business in TJFTZ. Financial institutions and specific non-financial institutions that conduct the TJFTZ business shall, as required, submit the relevant information to financial management departments, perform the obligations such as anti-money laundering, anti-terrorist financing and anti-tax evasion, assist financial management departments in regulating abnormal cross-border fund flow, and implement the responsibilities for the protection of financial consumers and investors.
Chapter VI Serving the Coordinated Development of Beijing-Tianjin-Hebei
Article 39 The service radiation functions of Tianjin port shall be enhanced, the integrated customs clearance in Beijing-Tianjin-Hebei and integrated inspection and quarantine shall be implemented, and direct customs clearance in Beijing-Tianjin-Hebei shall be promoted. The inland dry port layout shall be optimized and the policies for tax refund at the port of departure shall be implemented in accordance with the provisions of the state.
Eligible enterprises registered in TJFTZ are supported in expanding the bonded exhibition and trade business to Tianjin municipality, Beijing municipality and Hebei province.
Enterprises in Beijing municipality and Hebei province are supported in building exclusive logistics zones in TJFTZ and improve the collection and distribution system and bonded logistics network in Beijing-Tianjin-Hebei.
Article 40 The positive role of TJFTZ in driving scientific and technological innovation in Beijing-Tianjin-Hebei and northern China and driving the industry upgrading of regions, and other aspects, shall be played, and the cooperative innovation service platforms shall be established with Beijing municipality and Hebei province, so as to promote the opening and sharing of innovative resources and innovative achievements.