By Yuling Chen, iChongqing News

Chongqing- Chongqing Operations Office of the People’s Bank of China (PBC) have made efforts to improve the efficiency of cross-border financing and settlement. This year marks the second anniversary of China (Chongqing) Pilot Free Trade Zone, and Chongqing has innovated in financing rules for land-borne trade.

Jiangbeizui CBD area at night, perspective from Yuzhong District (photo by Si Qi)

PBC Chongqing Operations Office plays an active role in early and pilot implementation, carried out reforms in key sectors of foreign exchange administration, and supports Chongqing to be a pioneer of opening-up in hinterland China.

Deepen facilitation measures for cross-border settlement

Chongqing Operations Office explores to establish financing rules for land-borne trade, achieving the regular operation of rail bill of lading and the settlement of account by letter of credit and making a breakthrough in road B/L. The exploration was regarded as an innovation of Chongqing Pilot FTZ. Within a year, accounts opened were worth RMB 105 million L/C. Chongqing has been promoted to become the first pilot city for cross-border e-commerce payment services in China, and one of the first regions in the country to carry out the pilot settlement of exchange and payment for capital projects income.

Develop cross-border investment and financing channels

Chongqing has become a pilot city for the development of RMB overseas fund business, in line with the growing demand for overseas RMB investment and financing. Reforms have proceeded in the Qualified Domestic Institutional Investor or QDII. PBC Chongqing Operations Office promoted two QDII institutions to obtain overseas investment quota worth USD 200 million.

Promote cross-border RMB settlement

Chongqing Operations Office supports the use of RMB in countries along the Belt and Road to further increase the proportion of cross-border RMB settlement, supports the construction of the New International Land-Sea Trade Corridor, and promotes business ties between China's western cities and Association of Southeast Asian Nations countries. The actual settlement of cross-border RMB in the whole year was 92.30 billion yuan, a year-on-year increase of 16.6%. Meanwhile, foreign exchange derivatives contracts worth USD 20 billion was completed throughout the year.

Improve services

A three-in-one foreign exchange administrative service online processing platform was explored and established. The platform combines the foreign exchange bureau, the bank, and the enterprise. Moreover, 147 foreign exchange administrative service submission points were set up to achieve 100% coverage of 38 districts and counties of Chongqing.