(Yicai) April 22 -- Shanghai and three national institutions have jointly released a new action plan to further facilitate cross-border financial services in the city and bolster support for firms "going global" and China's Belt and Road Initiative.

Eighteen key measures across five areas aim to improve cross-border settlement efficiency, optimize foreign exchange hedging services, strengthen financing support, enhance insurance coverage, and refine comprehensive financial services, according to the plan issued by Shanghai, the People's Bank of China, the National Financial Regulatory Administration, and the State Administration of Foreign Exchange yesterday. These should help entities engage in international competition and cooperation more securely, conveniently, and efficiently.

The PBOC and the Shanghai government will collaborate with relevant authorities to implement the measures, further facilitating cross-border investment and financing while strengthening the city's competitiveness and influence as an international financial hub.

The plan proposes optimizing foreign exchange business management models and operational processes. It supports pilot branches of Bank of China, China Citic Bank, China Minsheng Bank, Citibank China, and other lenders in Shanghai to conduct business under new regulations and encourages more local banks to participate.

In addition, the plan seeks to enhance the functionality and global network coverage of China's Cross-Border Interbank Payment System, with efforts focused on expanding the system's membership, broadening its reach, and advancing upgrades. Blockchain technology applications will be explored to provide secure and efficient settlement services for Chinese yuan-denominated global trade, shipping, and investment.

CIPS covered 185 countries and regions as of the end of last year, with 168 direct and 1,461 indirect participants, linking major domestic and overseas commercial banks, clearing institutions, and international financial organizations.

The new action plan supports qualified lenders exploring non-resident acquisition loan services following international practices for firms in the Shanghai Free Trade Zone "going global." Loans may cover up to 80 percent of transaction values, with terms not exceeding 10 years.

Regarding insurance, the plan highlights increased coverage for export-oriented companies, particularly in key sectors, including domestic commercial aircraft, new energy vehicles, and large-scale equipment manufacturing. Insurers are encouraged to develop tailored products for shipping-related industries and provide coverage for biotech firms' overseas clinical trials and high-end medical equipment exports.

Editor: Martin Kadiev