Five central government departments jointly issued guidelines, signaling that virtual asset-related products may be included in the "Cross-boundary Wealth Management Connect" program
TechFlow Selected TechFlow Selected
Five central government departments jointly issued guidelines, signaling that virtual asset-related products may be included in the "Cross-boundary Wealth Management Connect" program
Expand the range of investment products; support residents in the Guangdong-Hong Kong-Macao Greater Bay Area to purchase qualified investment products from Hong Kong and Macao.
Navigating Web3 tides with focused insightsEditor: Bowen, White Dew Living Room
On January 22, 2025, the official website of the Central People's Government of the People's Republic of China showed that the People's Bank of China, Ministry of Commerce, National Financial Regulatory Administration, China Securities Regulatory Commission (CSRC), and State Administration of Foreign Exchange jointly issued the "Opinions on Piloting Alignment with International High Standards to Promote Institutional Opening in the Financial Sector in Eligible Pilot Free Trade Zones (Ports)", marking the beginning of a new wave of financial opening-up.
The opinions propose 20 policy measures, including supporting the optimization of the Guangdong-Hong Kong-Macao Greater Bay Area’s “Cross-boundary Wealth Management Connect” pilot program and allowing foreign-invested financial institutions to provide new financial services. Three key points are highlighted:
-
Allowing both Chinese and foreign institutions to offer new financial services—services not yet provided within China but already offered and regulated in other countries or regions;
-
Continuously optimizing the “Cross-boundary Wealth Management Connect” pilot in the Guangdong-Hong Kong-Macao Greater Bay Area, enabling mainland residents in the Greater Bay Area to purchase eligible investment products offered by Hong Kong and Macao financial institutions through these institutions; expanding the range of participating institutions and eligible investment products;
-
Under genuine and compliant conditions, all transfers related to foreign investors’ investments in pilot areas may be freely remitted in and out without delay. Such transfers include: capital contributions; profits, dividends, interest, capital gains, royalties, management fees, technical service fees, and other expenses.
Under the new policies, virtual asset-related products may be included in Cross-boundary Wealth Management Connect; meanwhile, new possibilities are created for integrating blockchain technology with traditional finance. In particular, in the field of RWA (real-world assets), cooperation between foreign financial institutions and blockchain enterprises is expected to become an important way for domestic companies to broaden financing channels.
Full text of the Opinions:
To thoroughly implement the spirit of the Central Financial Work Conference, and in accordance with the "Several Measures on Piloting Alignment with International High Standards to Promote Institutional Opening in Eligible Pilot Free Trade Zones and Free Trade Ports" and the "Overall Plan for Advancing High-Level Institutional Opening in China (Shanghai) Pilot Free Trade Zone by Fully Aligning with International High-Standard Economic and Trade Rules," the following opinions are hereby put forward regarding piloting alignment with international high standards to promote institutional opening in the financial sector in eligible pilot free trade zones, free trade ports, and other designated regions.
(Regions include Shanghai, Guangdong, Tianjin, Fujian, Beijing Pilot Free Trade Zones, and Hainan Free Trade Port, as well as横琴粤澳deep cooperation zone, Qianhai-Shenzhen Modern Service Industry Cooperation Zone, Guangzhou Nansha, and other major platforms for opening up to Hong Kong and Macao where the Party Central Committee and the State Council have made clear arrangements and assigned significant tasks for opening-up; collectively referred to below as pilot areas)
Allow Foreign-Invested Financial Institutions to Provide New Financial Services Comparable to Domestic Institutions
(1) For the purposes of these Opinions, new financial services refer to financial services not yet provided within China but already offered and regulated in other countries or regions.
The provision of new financial services shall follow the principle of national treatment. Except for specific new financial services involving national security or financial stability, if Chinese financial institutions are allowed to provide such services, foreign-invested financial institutions in pilot areas should also be permitted to do so.
New financial services may be launched via licensing or pilot programs.
(2) Where a new financial service is to be provided under a licensing regime, financial regulators may determine, based on equal treatment, the types and nature of institutions eligible to provide the service, and may require prior approval.
Financial regulators shall make decisions within a reasonable timeframe and may only deny approval for prudential reasons.
(3) Where a new financial service is to be provided through a pilot program, qualified foreign-invested financial institutions should be actively supported to participate, and they must not be excluded from pilot eligibility.
If foreign-invested financial institutions are not included among pilot participants, a fully justified explanation must be provided.
Decide on Applications from Financial Institutions Within 120 Days
(4) Under the principle of national treatment, complete applications submitted in legal form by overseas financial institutions, their investors, or cross-border financial service providers seeking to operate financial services in pilot areas shall receive a decision within 120 days of acceptance, and applicants shall be promptly notified.
If a decision cannot be made within 120 days, timely communication and explanation with the applicant shall occur. Where laws or administrative regulations stipulate longer timeframes exceeding 120 days, decisions shall be made within those prescribed periods.
(5) Optimize administrative examination and approval services related to securities and futures financial services.
Revise relevant approval systems and administrative licensing guidelines to shorten the review period for establishing domestic and foreign-funded securities companies (including specialized subsidiaries), public fund management companies, and futures companies in pilot areas from 180 days to 120 days.
(6) Optimize administrative examination and approval services related to banking and insurance financial services. Refine approval procedures, improve service efficiency, and reduce the approval timeline for setting up foreign-funded banking operations and foreign insurance institutions in pilot areas from 180 days to 120 days.
Support Lawful Cross-Border Purchase of Certain Types of Overseas Financial Services
(7) In line with China's World Trade Organization (WTO) commitments, currently open sectors under cross-border supply are: Banking—cross-border provision and transfer of financial information, financial data processing, and related software; consulting, intermediary, and ancillary services.
Insurance—provision of reinsurance, international maritime, air, and transport insurance, large commercial insurance brokerage, international maritime, air, and transport insurance brokerage, and reinsurance brokerage.
(8) Under genuine and compliant conditions, enterprises and individuals in pilot areas may lawfully conduct cross-border fund settlements for renewal, claims, and surrender of cross-border insurance policies under current account transactions.
(9) Continuously optimize the “Cross-boundary Wealth Management Connect” pilot in the Guangdong-Hong Kong-Macao Greater Bay Area, supporting mainland residents in the Greater Bay Area to purchase eligible investment products sold by Hong Kong and Macao financial institutions through these institutions. Expand the scope of participating institutions and eligible investment products.
(10) Establish a Macao financial services zone within the Macao New Neighborhood in the Hengqin-Macao In-depth Cooperation Zone. Under the premise of compliance with laws and regulations, explore providing financial services to residents of the Macao New Neighborhood under a dual-currency (RMB and MOP) merchant acquiring model.
Facilitate Remittance In and Out of Transfers Related to Foreign Investment
(11) Under genuine and compliant conditions, all transfers in pilot areas that are genuine, compliant, and related to foreign investor investment may be freely remitted in and out without delay. These transfers include: capital contributions; profits, dividends, interest, capital gains, royalties, management fees, technical service fees, and other expenses;
Proceeds from full or partial sale of investments; proceeds from full or partial liquidation of investments; payments under contracts including loan agreements; legally obtained compensation or damages; funds arising from dispute resolution.
(12) Within the macro-prudential management framework, continuously enhance the convenience of the entire foreign investment transaction process in pilot areas. Guide commercial banks to strengthen due diligence and verify that corresponding fund receipts and payments are based on genuine and lawful transactions.
(13) Support extending the coverage of trade and investment facilitation pilot policies to more qualified foreign-invested enterprises in pilot areas, enhancing settlement convenience for foreign-invested enterprises.
(14) In Hainan Free Trade Port and the Hengqin-Macao In-depth Cooperation Zone, build a multi-functional free trade account system to enhance the freedom and convenience of cross-border capital flows.
Improve Arrangements for Cross-Border Financial Data Flows
(15) Facilitate and regulate cross-border data flows of financial institutions in pilot areas. Under the national framework for cross-border data transmission security management, explore a unified compliance approach for cross-border financial data flows, clarify rules, and allow financial institutions in pilot areas to transmit data necessary for daily operations abroad in accordance with the law.
Management measures may be imposed on cross-border financial data transmissions for data security, personal information protection, or prudential considerations. Explore establishing a "white list" system for cross-border financial data circulation, incorporating mature data from pilot areas approved by relevant national authorities into the white list.
In response to the needs of financial institutions in pilot free trade zones for cross-border data transmission, study the list of data requiring inclusion in security assessments for data出境, standard contracts for personal information出境, and certification management for personal information protection, and efficiently conduct security assessments for important financial data and personal information出境.
(16) Formulate classification and grading rules and standards for financial data, research and release directories of important financial data in the financial sector, urge and guide financial institutions to identify and declare important data, submit applications for security assessments of data出境, and advance work on cross-border financial data security protection.
(17) Support financial institutions and payment service providers in pilot areas to develop internationally advanced standards for electronic payment systems, conduct cross-border digital identity authentication and electronic identification, support the legal introduction of overseas electronic payment institutions, and study improving internationally aligned digital identity authentication systems.
(18) For the import, distribution, sale, or use of mass-market financial software (excluding software used in critical information infrastructure in the financial sector) and products containing such software, relevant departments and their personnel shall not require the transfer or acquisition of source codes owned by enterprises or individuals as a condition.
Strengthen Financial Regulation and Effectively Prevent and Resolve Financial Risks
(19) Improve risk monitoring, early warning, prevention, and resolution systems.
Enhance identification of major financial risks and guard against systemic financial risks in pilot areas. Strengthen inter-departmental regulatory coordination in pilot areas, enhance collection, monitoring, and utilization of cross-border payment and receipt data, intensify efforts against illegal financial activities, and improve emergency response mechanisms for financial risks.
(20) Establish a cross-border dispute resolution mechanism aligned with international rules.
Improve financial consumer rights protection systems, support international arbitration and mediation services in pilot areas, and explore diversified and international mechanisms for resolving cross-border disputes. Build an integrated, diversified, and international financial dispute resolution platform combining “commercial mediation + international arbitration.”
Measures concerning market access opening and preferential treatment for Hong Kong and Macao services and service providers shall be implemented under the framework of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) and the Mainland and Macao CEPA. Relevant departments and pilot areas shall strengthen implementation, conduct effectiveness evaluations, summarize experiences in a timely manner, and promote replication and dissemination.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
