On April 21, the People's Bank of China reported that recently, the People's Bank of China, the State Administration of Financial Supervision, the State Administration of Foreign Exchange and the Shanghai Municipal People's Government jointly issued the Action Plan of Shanghai International Financial Center to Further Improve the Facilitation of Cross border Financial Services (hereinafter referred to as the Action Plan). The Action Plan focuses on better leveraging the special role of Shanghai International Financial Center in serving the construction of a new development pattern, supporting various entities to participate in international competition and cooperation more safely, conveniently, and efficiently. It proposes 18 key measures from five aspects, including improving cross-border settlement efficiency, optimizing exchange rate hedging services, strengthening financing services, enhancing insurance protection, and improving comprehensive financial services. This is of great significance for Shanghai to accelerate the construction of an international financial center. In terms of improving cross-border settlement efficiency and facilitating global fund management for enterprises, we support banks in implementing foreign exchange business management measures, optimizing foreign exchange business processes and system reengineering, grading foreign exchange compliance risk levels for enterprises, and providing differentiated and convenient financial services. Encourage banks to carry out cross-border digital identity authentication and electronic identification for individuals and enterprises, steadily expanding the coverage of digital services in cross-border payment and receipt business. In terms of optimizing exchange rate hedging services and improving foreign exchange risk management and response capabilities, support the Foreign Exchange Trading Center to provide trading facilities for RMB and foreign exchange transactions in the pilot free trade zone, and improve the foreign exchange trading services for the currencies of countries along the "the Belt and Road". Improve the convenience and efficiency of cross-border use and payment of RMB, encourage banks to optimize document review, strengthen data sharing, and enhance the experience of "going global" enterprises using RMB for investment and financing, project construction and procurement, and income recovery throughout the entire chain under the premise of real compliance. In terms of strengthening financing services and assisting enterprises in global investment and financing, Shanghai has piloted the use of rediscount windows to support RMB cross-border trade financing, encouraging banks in Shanghai to expand cross-border trade credit to reduce the cost of RMB trade financing for enterprises, and promoting RMB denominated import and export trade settlement. Support qualified banks to explore and study providing non resident merger and acquisition loan services for "going global" enterprises in the Shanghai Pilot Free Trade Zone, in accordance with international practices. The loan amount shall not exceed 80% of the merger and acquisition transaction price, and the loan term shall not exceed 10 years. In terms of strengthening insurance protection and improving risk management level, we will increase the insurance protection for key export enterprises such as domestic commercial aircraft, new energy vehicles, and large-scale complete equipment, promote cooperation between insurance companies and reinsurance companies, establish insurance communities, and enhance our ability to protect against special risks. Support the establishment of legal entities or branches of insurance companies, reinsurance companies, and insurance brokerage companies specializing in reinsurance business in the Lingang New Area, and steadily promote online transactions of cross-border reinsurance and domestic reinsurance business. In terms of improving comprehensive financial services and enhancing global allocation capabilities, we will establish a high-level international financial asset trading platform to become an important functional platform for allocating global financial resources and facilitating international investors' deep participation in the Chinese financial market. Support qualified domestic limited partner (QDLP) pilot enterprises to reasonably improve the efficiency of raising funds under the premise of complying with regulations, and allow them to subscribe to short-term cash management products such as domestic low-risk level (R2 and below) currency funds, cash management wealth management, and fixed deposits, and subscribe to overseas cash management products based on the open characteristics of overseas main funds. Support QDLP pilot enterprises to complete domestic fundraising and fund establishment, and then exchange funds out of the country in batches according to the needs of overseas main funds. Support the expansion of QDLP fundraising sources and explore the raising of local and foreign currency funds. It is reported that, in the next step, the People's Bank of China and the Shanghai Municipal People's Government will work with relevant departments to promote the implementation of various measures of the Action Plan, further improve cross-border investment and financing facilitation, continuously enhance the competitiveness and influence of Shanghai International Financial Center, and promote high-quality economic development and high-level opening up. (New Society)