29 July 2019
China Looks to Make Good on G20 Pledge to Open Up Financial Markets
The State Administration of Foreign Exchange (SAFE) announced on 18 July plans to deepen the reform of foreign exchange administration and promote the two-way opening-up of the financial market, while also safeguarding the stability of the foreign exchange market and guarding against cross-border capital flow risks. These moves are intended to make good on President Xi Jinping’s recent G20 pledge to further open up the Chinese market.
More specifically, SAFE’s intended measures include continuing to promote the liberalisation and facilitation of cross-border trade and investment. To this end, foreign exchange administration policies will be optimised, while trade formats innovation will be encouraged and the exchange of funds between foreign-invested enterprises further facilitated, Additionally, the implementation of foreign exchange reforms will be trialled in the Pilot Free Trade Zones, the Guangdong-Hong Kong-Macao Greater Bay Area and the Xiong’an New Area, while support will be given to the opening-up of Hainan.
Source: State Administration of Foreign Exchange