Major Announcement from the PBoC: Eight Key Financial Policies Released

On the morning of June 18, the 2025 Lujiazui Forum officially opened for its two-day program. This year’s theme focuses on “Financial Opening, Cooperation, and High-Quality Development Amid Global Economic Changes.” According to the updated agenda for the opening ceremony, Pan Gongsheng, Governor of the People’s Bank of China; Li Yunze, Director of the National Financial Regulatory Administration; Wu Qing, Chairman of the China Securities Regulatory Commission; and Zhu Hexin, Director of the State Administration of Foreign Exchange, will deliver keynote addresses.

During the forum, Pan Gongsheng announced eight new financial opening initiatives. The first involves creating a centralized trade reporting repository for the interbank market, designed to gather high-frequency data and conduct structured analyses across various sub-sectors—including bonds, money markets, derivatives, gold, and bills—to support financial supervision, macroeconomic decision-making, and institutional operations.

Second, a center for international digital renminbi operations will be established to facilitate the global application of the currency and foster the development of related financial markets, with the goal of advancing digital financial innovation.

The third measure introduces a new personal credit reporting agency, aimed at delivering customized and diversified credit services to financial institutions and enhancing the national credit system. Fourth, a pilot program will be launched to reform offshore trade financial services within the Lingang New Area in Shanghai. The initiative focuses on innovative business rules to accelerate offshore trade development in the region.

Fifth, Free Trade Offshore Bonds will be introduced, following the “both ends overseas” model and aligned with international norms. These bonds are intended to expand funding access for outbound enterprises and qualified firms in Belt and Road participating economies.

The sixth step involves upgrading Free Trade Accounts to ensure smoother capital movement between high-quality domestic enterprises and global capital. This is expected to improve the efficiency of cross-border trade and investment while reinforcing Shanghai’s role in China’s financial opening.

Seventh, a pilot for implementing structural monetary policy tools in Shanghai will be rolled out. These include blockchain-backed refinancing of letters of credit for the aviation and trade sectors, cross-border trade refinancing programs, and the broadening of carbon emissions reduction support tools. In addition, Shanghai will work to promote risk-sharing instruments for technology innovation bonds, aiding private equity institutions in their issuance efforts.

The eighth initiative, conducted jointly with the China Securities Regulatory Commission, involves research and promotion of RMB foreign exchange futures trading. This effort aims to diversify foreign exchange market products and support financial institutions and exporters in managing currency risk more effectively.

Pan Gongsheng elaborated on the structural monetary policy pilots underway in Shanghai, noting that blockchain-backed refinancing enables credit-based relending to assist local banks in supporting trade-focused firms. The cross-border refinancing scheme uses rediscounting methods to offer RMB-denominated financing to importers and exporters. Carbon emission reduction support tools will be extended to transitional and locally specialized industries. Additionally, the city will promote the wider adoption of risk-sharing mechanisms for innovation-focused bonds to bolster issuance by private equity funds.

He also pointed out that the renminbi now ranks as the second-largest currency for global trade finance. It is also the third-largest international payment currency on a full-caliber basis and maintains a prominent position in the International Monetary Fund’s Special Drawing Rights (SDR) currency basket. Looking ahead, whether a single sovereign currency or a group of such currencies emerge as leading international units, Pan emphasized that issuers must shoulder related responsibilities by reinforcing domestic fiscal policies, improving financial regulation, and advancing structural reforms.