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China-Malaysia Qinzhou Industrial Park launches financial innovations
Updated: Sep 3, 2020
en.gxzf.gov.cn
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Guangxi Zhuang autonomous region has received approval from the People's Bank of China (PBC) to carry out five financial innovation pilot projects in China-Malaysia Qinzhou Industrial Park in August, further increasing Guangxi's financial opening-up and cooperation level.
Jointly built under the cooperation of Malaysia and China, China-Malaysia Qinzhou Industrial Park is the third international industrial park of its kind in China.
The five pilot projects, which include convenient cross-border renminbi (RMB) two-way flow facilitation, cross-border RMB interbank financing, RMB loans for overseas projects in China-Malaysia Qinzhou Industrial Park, and cross-border transfer of domestic credit assets, are expected to bring conveniences in two areas, namely investment and financing, as well as cross-border capital flow.
The convenient cross-boundary RMB two-way flow facilitation will be conducted first by China, supporting economic entities in making full use of both domestic and overseas resources in the allocation, management, and usage of RMB, greatly cutting down costs in capital and exchange.
The cross-border RMB interbank financing is the first institutional innovation made by China in regional cross-border RMB interbank financing. It will bring liquidity guarantee to banks in Malaysia when conducting RMB businesses and will expand the channels for Malaysian banks in the allocation of RMB funds.
The Nanning Central Sub-branch of PBC noted that the approval for carrying out the financial innovation pilot projects in China-Malaysia Qinzhou Industrial Park marked a key milestone in Guangxi's effort to become the financial gateway to the Association of Southeast Asian Nations (ASEAN).
