On October 18, at the Annual Conference of Financial Street Forum 2024 in Beijing, Zhu Hexin, Deputy Governor of the People's Bank of China and Administrator of the State Administration of Foreign Exchange, delivered a speech emphasizing the importance of focusing on high-level opening-up and improving the quality of capital account liberalization. As part of this initiative, a study will be undertaken to develop a mid-term reform plan aimed at facilitating foreign exchange in foreign direct investment (FDI).

Zhu Hexin stated that efforts should be made to enhance the convenience of FDI exchanges, optimize the management requirements for foreign exchange registration, accounts, and fund usage, simplify business processes, and streamline management procedures, therefore creating a favorable environment for foreign enterprises to develop and thrive in China.

Additionally, there should be a steady advancement in the interconnectedness of financial markets. Zhu Hexin emphasized the need to optimize the qualified foreign investor system to support the growth of patient capital. He also highlighted the importance of collaborating with relevant departments to advance the high-level opening of the bond market.

In addition, he stressed the necessity of continuing reforms in cross-border financial transactions. Zhu Hexin emphasized the importance of supporting national strategies through the implementation of differentiated foreign debt management. He also highlighted the need to enhance cross-border financing facilitation policies to include more asset-light startups and small-to-medium enterprises, thereby broadening their financing options.

Zhu Hexin stated that efforts should focus on enhancing the ability to oversee open markets and manage risks, reinforcing the dual management approach of "macro-prudential + micro-regulation" in the foreign exchange market.

He emphasized the importance of improving the monitoring, early warning, and response mechanisms for cross-border capital flows from a macroeconomic perspective. Additionally, he stressed the need to strengthen macro-prudential management and expectations guidance to maintain the RMB exchange rate at a stable and reasonable level. On a micro level, stringent and precise regulatory measures will be implemented, fully utilizing regulatory technology to strengthen comprehensive oversight in the foreign exchange sector. There will be a rigorous crackdown on all types of illegal and non-compliant foreign exchange activities to maintain a healthy order in the foreign exchange market.

Translated by Fujian Investment Promotion Center