China’s senior-most government bodies have flagged further support for the participation of private and foreign capital in the establishment of joint-venture banks in economic trial zones.
Five of Beijing’s top departments have jointly issued the “Several Opinions on Further Advancing Integrated Pilot Trials for Liberalised New Economic Model Systems (关于进一步推进开放型经济新体制综合试点试验的若干意见).
In addition to a raft of general requirements addressed to China province-level governments on the economic trial programs within their respective jurisdictions, the “Opinions” flag further support for the establishment of branches by foreign-invested banks, as well as the participation of private and foreign-invested financial institutions in the establishment of Sino-foreign joint-venture banks.
The opinions also advocate permitting qualified foreign enterprises to issue RMB-denominated bonds within China, and multi-national enterprise groups to undertake cross-border two-way RMB cash-pooling enterprise within economic trial zones.
The “Opinions” were jointly issued by China’s Central Bank, the General Administration of Customs, the General Administration of Quality Supervision, the Ministry of Commerce, and the National Development and Reform Commission.