Chongqing - Chongqing saw cross-border yuan settlement for goods trade reach 85.05 billion yuan (about 12.51 billion U.S. dollars) in the first quarter, the highest among provinces and municipalities in central and western China, local financial regulators said on May 9.
A view of Chongqing's city skyline from Raffles City Chongqing. (Photo/Zheng Ran)
Wen Jiangyong, deputy governor of the Chongqing branch of the People's Bank of China (PBOC), said the city’s first-quarter financial operations grew in scale, quality and efficiency, supported by expanded pilot policies for cross-border yuan settlement in trade and investment.
Qualified micro, small, and medium-sized enterprises are now on a trusted “white list” for simplified cross-border receipts and payments. Officials said Chongqing has facilitated 68.27 billion U.S. dollars in cross-border trade settlements for local companies.
A related pilot program also lets selected laptop contract manufacturers join integrated yuan and foreign-currency cash-pool management, helping multinationals manage domestic and overseas funds more efficiently.
The measure comes as Chongqing's foreign trade posted strong first-quarter growth. The municipality's total imports and exports reached 221.55 billion yuan in the first quarter, up 34.3% year on year and a record high for the same period. Exports of laptops, mobile phones, integrated circuits, and automobiles reached 40.53 billion yuan, 13.73 billion yuan, 29.08 billion yuan, and 13.23 billion yuan, respectively, rising 13.6%, 11.2%, 170.1% and 70.5% year on year.
A major component of Chongqing's cross-border financial opening-up is the New International Land-Sea Trade Corridor (ILSTC) Financial Service Center, which began operations in February.
Wen described the center as both a "financial supermarket" and a "financial steward" for enterprises. It has opened a one-stop service hall and brought in 15 key institutions in banking, insurance, and guarantee services, alongside law firms and accounting firms providing on-site support.
The center has launched 35 dedicated financial products. It has also helped six bank headquarters and 14 Chongqing-based bank branches introduce targeted support measures for corridor-related businesses.
The center has introduced policy-backed exchange-rate hedging services. Companies applying for forward foreign exchange settlement and sales may be exempted from margin payments, reducing the cost of managing currency risk.
It also supports pledge financing based on a digital bill of lading under the single-document logistics system. Officials said the arrangement allows companies to obtain financing while goods are still in transit. The center recently completed its first financing case combining the single-document logistics system with the digital renminbi.
Since starting physical operations, the center has held more than 10 bank-enterprise matchmaking and policy briefing events, attracting nearly 200 corridor-related companies and supporting 16.8 billion yuan in loan issuance.
Wen said the Chongqing branch of the PBOC will continue to implement a moderately loose monetary policy. He said the branch will provide stronger financial support for Chongqing's economy, while creating a better financial services environment for cross-border trade and investment.