Cross-border renminbi (RMB) receipts and payments in Shenzhen surpassed 3 trillion yuan (US$425 billion) for the first time in 2021, a fivefold increase from 2012, statistics from the People’s Bank of China Shenzhen Central Sub-branch showed Tuesday.
The city’s cross-border RMB receipts and payments accounted for 47.5% of all cross-border domestic and foreign currency settlements, 31 percentage points higher than that of 2012.
In the past decade, Shenzhen has been taking the lead in advancing the internationalization of RMB, and has vigorously promoted the facilitation of cross-border RMB settlement and explored cross-border RMB business innovation.
The city topped the country with its cumulative amount of cross-border RMB settlement reaching 17.4 trillion yuan from 2009 to the end of August, as per official data.
Sixty-seven commercial banks and 97,000 firms have participated in Shenzhen’s cross-border RMB settlement, and 189 countries and regions have engaged in cross-border RMB receipts and payment with the city.
Shenzhen has also spearheaded a pilot cross-border RMB loan business. In 2012, measures were released to support Qianhai firms borrowing funds in RMB from Hong Kong banks.
As of the end of the pilot project, the cross-border RMB loan business had witnessed withdrawals of 37.1 billion yuan, involving 170 Qianhai borrowers, 36 Hong Kong lenders and 28 Shenzhen settlement banks.
The central bank’s Shenzhen branch has taken the lead in exploring cross-border RMB asset transfer business targeting domestic trade financing such as bank forfeiting, bills and factoring since 2016.
The pilot project has indirectly helped enterprises to obtain financing from overseas, effectively reducing financing costs and expanding the use of offshore RMB to meet the needs of overseas financial institutions to allocate high-quality assets in the country.
By the end of August 2022, 17 banks had participated in the pilot project, with a total business amount of 197.22 billion yuan and a balance of 2.86 billion yuan. Overseas transferees were distributed in 16 countries and regions across the globe.
The central bank’s Shenzhen branch has also guided local commercial banks to provide a package of financial services such as cross-border RMB receipts, domestic clearing, and income and expenditure declaration for export-oriented e-commerce businesses.
Residents in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) have also been able to purchase personal cross-boundary investment products through the pilot banks under the Cross-boundary Wealth Management Connect since October 2021.
By the end of August, the number of GBA residents participating in the pilot project through Shenzhen banks had reached 15,300, statistics showed. The amount of cross-border fund transfer and investment product transactions totaled 486 million yuan and 297 million yuan, respectively.