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Four departments jointly release plan to enhance cross-border financial services, insurance support in ShanghaiBy Chen Qingrui (Global Times) 13:58, April 22, 2025
The People's Bank of China (PBC), the central bank, and three other departments have agreed on an action plan to support Shanghai's status as an international financial center by further improving cross-border financial services, with a particular focus on increasing insurance support for export-oriented enterprises, the PBC announced on its official website on Monday.
The plan calls for increased insurance support for key export enterprises in sectors, including domestically produced commercial aircraft, new-energy vehicles (NEVs) and large-scale equipment. It encourages greater collaboration between insurance and reinsurance companies, the establishment of insurance consortiums and enhanced capacity to underwrite specialized risks.
The plan supports insurance companies in offering services for sectors such as shipping, aligning with China's new export strengths, market trends and industry characteristics, while continuously optimizing insurance products.
It enhances insurance coverage for cross-border travelers, including protection against accidental injury, medical expenses and illness, while supporting insurance companies in developing tailored products. It encourages airports, ports and travel agencies to provide easier access to such insurance services.
The Shanghai Municipal Financial Regulatory Bureau will guide institutions in expanding the "Belt and Road" global inspection service network, improving its functionality and extending its coverage, according to the PBC.
Additionally, the plan supports the Shanghai Institute of Marine Insurance in developing internationally aligned underwriting, claims and recovery guidelines, as well as standardized document templates designed for global application.
Insurance is vital for high-value industries like commercial aircraft, NEVs and large-scale equipment, which are attracting growing international demand, Bian Yongzu, the executive deputy editor-in-chief of Modernization of Management magazine, told the Global Times on Monday.
The continuous strengthening of insurance measures will drive the rapid development of high-value industries. Ensuring the international competitiveness of key sectors is a crucial component for the steady progress of China's structural economic development, Bian said.
The notice aims to better leverage the financial center's unique role in supporting the formation of a new development pattern.
The plan also outlines financial measures to improve cross-border settlement efficiency and facilitate global fund management for enterprises. The plan calls for strengthening the functionality and global reach of the Cross-Border Interbank Payment System (CIPS).
It encourages cross-border clearinghouses to deepen cooperation with financial institutions to better serve internationally expanding enterprises, and it also seeks to expand participation in the CIPS by increasing the number of member banks, further broadening its network.
It emphasizes strengthening the system's infrastructure, improving its operational capabilities, exploring blockchain technology applications, and providing secure and efficient settlement services for global trade, shipping and investment activities denominated in the yuan.
Given the vast scale of international trade, a strong financial system is essential for a nation's economic stability, Bian said. As a key financial hub, Shanghai's latest announcement plays a crucial role in safeguarding China's trade, especially amid the uncertainty brought by US tariff policies, he added, noting that it's vital for China to prepare in advance to ensure smooth trade operations.
(Web editor: Zhong Wenxing, Liang Jun)
