The People's Bank of China and four other departments: allow foreign financial institutions to provide new financial services similar to Chinese financial institutions in pilot areas.

On January 22, the People's Bank of China, the Ministry of Commerce, the China Banking and Insurance Regulatory Commission, and other five departments jointly issued the "Opinions on Advancing Systematic Opening in Financial Field in Pilot Free Trade Zones (Ports) to International High Standards". This document includes 20 policy measures in six aspects, such as allowing foreign financial institutions to provide new financial services similar to Chinese financial institutions, making decisions on applications for related services within 120 days, supporting cross-border purchase of certain types of foreign financial services, facilitating the transfer of investment-related funds for foreign investors, improving cross-border financial data flow arrangements, and strengthening financial supervision comprehensively. These policy measures will be implemented in pilot free trade zones in Shanghai, Guangdong, Tianjin, Fujian, Beijing, and Hainan, and serve as a platform for cooperation in opening up to the outside world, leading the pilot regions to explore and achieve comprehensive improvements in the quality of open economies in broader and deeper areas. The People's Bank of China, along with relevant departments, will promote the implementation of these measures, focus on the financial sector's openness in pilot free trade zones (ports), and continue to advance China's high-level opening to the outside world.Limit shortened from 180 days to 120 days.(6) Optimize administrative approval services related to banking and insurance financial services. Refine the approval workflow, optimize approval services, and shorten the approval time limit from 180 days to 120 days for foreign banks and insurance institutions intending to establish business institutions in pilot areas. (7) According to China's commitments upon joining the World Trade Organization (WTO), the currently open areas under cross-border services include: banking allowing cross-border provision and transfer of financial information, financial data processing, and related software; consulting, intermediary, and other related services. The insurance industry allows for reinsurance, international marine, air, and transportation insurance, large commercial insurance brokerage, international marine, air, and transportation insurance brokerage, and reinsurance brokerage. (8) Under real and compliant conditions, enterprises and individuals in pilot areas can handle routine cross-border policy renewals, claims, surrender, and other cross-border fund settlements in compliance with the law. (9) Continuously optimize the "cross-border wealth management link" pilot in the Guangdong-Hong Kong-Macao Greater Bay Area to support mainland residents in the Greater Bay Area to purchase qualified investment products from Hong Kong and Macao financial institutions. Expand the scope of participating institutions and qualified investment products. (10) Establish a Macao Financial Services Zone in the Hengqin Guangdong-Macao Deep Cooperation Zone for Macao residents to provide relevant financial services in a dual currency acquisition model of RMB and Macau currency under legal compliance. (11) Under real and compliant conditions, all transfers related to foreign investors' investments in pilot areas can freely enter and exit without delay. These transfers include: capital contribution; profits, dividends, interest, capital gains, royalties, management fees, technical guidance fees, and other fees; proceeds from the total or partial sale of investments, total or partial liquidation of investment proceeds; payments made under contracts including loan agreements; compensations received under the law; and payments arising from dispute resolutions. (12) Within the macro-prudential management framework, continuously improve the convenience of foreign investment transactions in pilot areas, guide commercial banks to strengthen business audit, and confirm that corresponding funds transfers have a real and legal transaction basis. (13) Support more eligible foreign investment enterprises in pilot areas to be covered by trade investment facilitation policies, enhancing the level of settlement facilitation for foreign investment enterprises. (14) In the Hainan Free Trade Port and the Hengqin Guangdong-Macao Deep Cooperation Zone, construct a multi-functional free trade account system to enhance the level of free and convenient cross-border fund flow. (15) Facilitate and regulate the cross-border flow of financial institution data in pilot areas, exploring unified compliance approaches for cross-border financial data flow within the national data cross-border transmission security management system. Allow financial institutions in pilot areas to transmit data required for daily operations abroad. Management measures may be taken for managing cross-border financial data transmission for data security protection or based on prudent considerations. Explore the establishment of a "white list" system for cross-border financial data circulation to include mature data research agreed upon by relevant national departments in pilot areas. Combine the needs of financial institutions in free trade test areas to study the list of data requiring an outbound security assessment, standardizing contracts for personal information exports, and assessing the security of important financial data and personal information. (16) Develop rules and standards for classifying and grading financial data, guiding financial institutions in identifying and reporting important data and applying for data exit security assessments, promoting efforts to protect the security of cross-border financial data. (17) Support financial institutions and payment service providers in pilot areas to develop international advanced standards for electronic payment systems, conduct international digital identity verification and electronic recognition, and support the introduction of overseas electronic payment institutions in accordance with the law, as well as explore and improve digital identity authentication systems that align with international standards. (18) Department officials cannot require the transfer or acquisition of relevant financial software source code owned by enterprises or individuals as a condition for importing, distributing, selling, or using mass-market financial software (excluding software used for critical information infrastructure in the financial sector). (19) Strengthen the risk monitoring, early warning, prevention, and resolution system. Strengthen the identification of major financial risks in pilot areas and the prevention of systemic financial risks, enhance cross-sectoral financial supervision coordination in pilot areas, intensify the collection, monitoring, and utilization of cross-border payment data, increase efforts to combat illegal financial activities, and improve the financial risk emergency response mechanism. (20) Establish a cross-border dispute resolution mechanism in line with international rules. Improve the system for protecting financial consumer rights, support the conduct of international arbitration and mediation in pilot areas, explore providing diversified and internationalized mechanisms for resolving cross-border disputes, and create a one-stop, diversified, and international platform for resolving financial disputes through "commercial mediation + international arbitration." This article involves measures related to the opening of the Hong Kong and Macao service provider markets and the provision of separate preferential treatment under the framework of the Mainland and Hong Kong and Mainland and Macao Closer Economic Partnership Arrangement (CEPA). Relevant departments and pilot areas should strengthen organization and implementation, conduct effectiveness evaluations, timely summarize experiences, and replicate and promote them. This article is adapted from the official website of the People's Bank of China. Editor: Jiang Yuanhua.