Select Language:
Shanghai will continue advancing the international use of the Chinese yuan and develop a new ecosystem for cross-border payments, working in tandem with the newly established Digital Yuan International Operation Center, according to the head of the local branch of the People’s Bank of China.
The city plans to broaden the scope and reach of policies supporting cross-border yuan transactions, expand the list of reputable enterprises eligible for yuan settlement, and improve the ease of business processes and fund transfer efficiency. These measures aim to better serve the needs of yuan transaction settlement, investment, financing, and risk management. Jin Penghui shared these insights in an exclusive interview.
Last year, Shanghai processed approximately CNY 32.4 trillion (roughly USD 4.7 trillion) in cross-border yuan receipts and payments, reflecting a 9% increase from 2022 and representing 46% of China’s total cross-border yuan transactions. Notably, around CNY 24.2 trillion, or about 75%, of this volume originated from securities investment activities, according to data from the Shanghai branch of the People’s Bank of China.
Jin emphasized the importance of capitalizing on favorable conditions such as relatively low yuan interest rates by actively promoting overseas yuan lending through both domestic and international channels. This will help expand opportunities for cross-border yuan investment and financing by upgrading and optimizing free trade account functions and creating offshore financial scenarios.
The city also intends to deepen high-level financial openness and speed up the development of a global intra-yuan asset allocation and risk management hub by gradually expanding institutional openness across regulations, management, and standards, Jin added.
The digital yuan cross-border payment platform, along with the blockchain service platform and digital asset platform established in Shanghai last September by the Digital Yuan International Operation Center, have fueled progress toward establishing Shanghai as an international financial hub, Jin noted.
The cross-border digital payment system addresses common issues faced by traditional payment methods and aims to create a new ecosystem marked by “zero loss, interconnected systems, and compliance,” further reinforcing Shanghai’s role in international finance.
ChatGPT
Perplexity
Gemini AI
Grok AI
