On May 6th, Industrial Bank successfully opened multi functional accounts for domestic and foreign enterprises in the Hainan Free Trade Port and the Guangdong-Macao In-Depth Cooperation Zone in Hengqin and handled business including depositing, transferring funds “across the first line” and “across the second line” to promote the Hainan Free Trade Port and the Guangdong-Macao In-Depth Cooperation Zone in Hengqin to make the free and convenient cross-border capital flow come true.
“In the past, it took us 2 or 3 days to pay a design fee aboard from initiating remittance application and handing in the contract to invoice reviewing. Now, it takes just several minutes,” A principal of Huafa Architectural Design Company said. This company is registered in the Guangdong-Macao In-Depth Cooperation Zone. On the morning of that day, this company fast finished its payment to the overseas account through its multi-functional account in CIB.
On April 3, 2024, “Management Measures for Multi functional Free Trade Account Business in the Hainan Free Trade Port” and “Management Measures for Multi functional Free Trade Account Business in the Hengqin Guangdong Macao Deep Cooperation Zone” released by the People’s Bank of China would be implemented on May 6th. Leading to the establishment of multi functional free trade account system, the People’s Bank of China explored overseas fund exchanges and cross-border capital flows in the Hainan Free Trade Port and the Guangdong-Macao In-Depth Cooperation Zone in Hengqin.
A multi functional free trade account refers to a domestic and foreign currency integrated account provided by banking institutions at the cooperative zone to meet the needs of high-level trade and liberalization and facilitation of investment and to provide cross-border fund payment, exchange, investment and financing and other related financial services to eligible business entities. The account serves eligible enterprises at the zones, foreign enterprises, individuals overseas and financing institutions. It is managed according to the “first line liberalization” and “second line cross-border management” policies. By implementing financial account isolation between multi functional free trade accounts and existing domestic and foreign currency accounts, it forms fundamental conditions for cross-border free flows of capitals at the Hainan Free Trade Port and at the Guangdong-Macao In-Depth Cooperation Zone in Hengqin.
A principal from the International Business Department of CIB said: “This account provides a convenient channel for foreign funds to enter into and exit the mainland for customers. For targeted enterprises, it can help to save running costs at the zones. At the same time, it brings convenience to foreign enterprises in the zones and enhances flexibility of the foreign investment.” By opening the multi functional free trade accounts, CIB provides comprehensive services including local and foreign currency deposits, payment and settlement, investment and financing, and exchange rate hedging to promote RMB internationalization and enhance the opening-up of China.