Bank of Communications (BOCOM) has become the first bank to take advantage of Shenzhen’s decision to permit cross-border transfer of renminbi assets in both directions.
The Shenzhen Foreign Exchange and Cross-border Renminbi Operations Disciplinary Mechanism (深圳市外汇和跨境人民币业务展业自律机制) recently released its “Bidirectional Renminbi Asset Transfer Operations Development Guidelines” (深圳自律机制跨境双向人民币资产转让业务展业指引), loosening restrictions on the cross-border transfer of renminbi assets.
The Guidelines add financial leases to the list of transferrable renminbi assets, as well as expands asset transfers from being unidirectional to bidirectional.
In the first week since the release of the Guidelines, BOCOM’s Shenzhen and Macau branches engaged in joint operations for BOCOM’s first bidirectional cross-border transfer of renminbi assets.
A representative from BOCOM’s Shenzhen branch said that the launch of bi-directional cross-border renminbi asset transfers would expedite cross-border flows of financial assets within the Greater Bay Area of Guangdong, Hong Kong and Macau.
BOCOM said that in future it would continue to support enterprises in the Greater Bay Area “coming in and going out”, and inject financial vitality into the development of the Greater Bay’s real economy as well as interconnections and linkages.