Action plan sets goals for offshore finance in Shanghai

An action plan to develop offshore finance in Shanghai was released on June 17 during the 2026 Lujiazui Forum by the People's Bank of China, the National Development and Reform Commission, the National Financial Regulatory Administration, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and the Shanghai Municipal People's Government.

According to the plan, by the end of 2027, Shanghai aims to establish a framework of business rules, risk management and resolution mechanisms, a supportive business environment, and other institutional arrangements tailored to offshore financial business.

By the end of 2030, the city is expected to have developed a relatively mature offshore financial system and rule-of-law framework capable of providing secure and reliable financial services for Chinese companies engaged in international investment and trade. The system is also intended to serve as a testing ground for reforms to the onshore financial system and strengthen the global allocation and risk management functions of renminbi-denominated assets.

By the end of 2035, Shanghai is expected to become a strategic hub integrating offshore and onshore financial services, leading China's high-level financial opening-up and high-quality development, according to the action plan.

Banking and financial institutions will be encouraged to use free trade accounts to provide financial services for enterprises engaged in offshore trade, offshore leasing and shipping, treasury management, and other offshore business activities. Free trade accounting units in the China (Shanghai) Pilot Free Trade Zone will be supported in investing in free-trade offshore bonds within designated quotas.

Shanghai will also improve cross-border fund management for offshore finance by making better use of existing offshore accounts while ensuring transaction traceability and risk control.

The international operation center for the digital RMB, which began operations in September, will support the development and operation of cross-border, offshore, and blockchain infrastructure for the digital RMB under safe and controllable conditions. It will also promote connectivity with overseas financial infrastructure and steadily expand the use of the digital RMB in offshore business activities.

Pudong New Area will be supported in developing offshore RMB transactions, cross-border trade settlement, and overseas financing services. The area will also steadily explore targeted offshore finance pilots based on actual needs and risk conditions, with new pilot business launched when conditions are deemed mature.

The first batch of pilot businesses will include financial services for offshore trade, free-trade offshore bonds, offshore reinsurance, fund operations of treasury centers, offshore RMB foreign exchange trading, and financial services for non-resident individuals.

The action plan also supports Shanghai's efforts to pilot treasury centers for multinational corporations and encourage companies to establish international treasury centers in the city.

Supporting policies will be introduced to facilitate fund operations and management, enabling treasury centers to pool overseas funds, strengthen risk management, and manage and use global funds more efficiently. Shanghai will also be encouraged to introduce supporting measures to enable the development of treasury centers.

As conditions mature, Shanghai will explore the broader expansion of offshore financial services, optimize offshore credit business models, and expand offshore banking products and services. Efforts will be made to study the viability of offshore financial asset transfers.

Asset management institutions will be supported in developing products that meet client needs and internationally accepted compliance requirements, and in carrying out overseas asset allocation as part of Shanghai's efforts to explore offshore asset management.

Shanghai will explore the development of family trust, family office, and other related services to build itself into a leading offshore wealth management center, according to the action plan.

Note: The English text is for reference only. In case of any discrepancies, the Chinese version shall prevail.