China's forex watchdog launches high-level pilot schemes for cross-border trade, investment

China's State Administration for Foreign Exchange (SAFE), the country's forex watchdog, on Tuesday announced it would launch a series of high-level regional pilot schemes in a bid to strengthen the country's openness in cross-border trade and investment. 

The regions involved include Lingang New Area of ​​Shanghai Pilot Free Trade Zone (FTZ), Nansha New Area of ​​Guangdong FTZ, Yangpu Economic Development Zone of Hainan Free Trade Port and Ningbo City, according to an online statement by the forex regulator. 

The SAFE said in the statement that it aims to support the construction of a new system for an open economy at a higher level and accumulate experience for exploring "more open and safer" foreign exchange management mechanisms.

The pilot schemes will focus on broadening cross-border investment and financing channels for enterprises and opening cross-border asset transfer business steadily and prudently, the authority said.

The projects are also designed to enhance the facilitating level of cross-border investment and financing. For example, foreign-invested enterprises are exempted from registration for domestic reinvestment and qualified companies can choose which currency to use for their cross-border investment and financing activities. 

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