Six Ministries Jointly Issue Plan: Offshore Financial Reform Lands in Pudong, Defining Six Priority Business Categories

To support Shanghai's pilot program for developing offshore finance, on June 17, six departments including the People's Bank of China and the National Development and Reform Commission jointly issued the Action Plan for the Development of Offshore Finance at the Shanghai International Financial Center (hereinafter referred to as the Action Plan), supporting pilot programs for offshore finance in the Pudong New Area and steadily exploring offshore financial pilot businesses.

The Action Plan requires the priority establishment in Shanghai of an offshore financial system that matches the Shanghai International Financial Center, focusing on serving the offshore economic and financial needs gradually formed in China in recent years, building a safe and reliable "financial haven" for "going-out" enterprises, and providing safe, reliable, and high-quality offshore financial services for enterprises in other countries and regions around the world.

The Action Plan establishes a clear, predictable three-step timetable. By the end of 2027, the plan aims to initially establish a system of business rules, risk management and disposal, and a business environment adapted to offshore financial businesses. By the end of 2030, it will gradually form a relatively mature offshore financial system and legal framework. Looking ahead to 2035, the goal is to build Shanghai into a strategic hub for the high-level coordinated development of offshore and onshore finance.

Six Types of Offshore Financial Businesses to Be Prioritized in the Initial Phase

Following the principle of "mature one category, implement one category," the Action Plan steadily explores offshore financial pilot businesses through a small-cut approach. In the initial phase, six types of offshore financial businesses with a certain foundation will be prioritized:

First, optimize and upgrade offshore trade financial services. Building on the launch of the comprehensive reform pilot for offshore trade financial services in the Shanghai Lingang Special Area in June 2025, the Action Plan supports the expansion of the pilot and extends the offshore trade financial service management model to more trade business scenarios. Support will be given to platforms such as "Cross-border Connect" and "Offshore Connect" to further integrate global customs, logistics, and other data, providing support for offshore trade financial services.

Second, develop the free trade offshore bond market with high quality. Following the principle of "two ends outside" and benchmarking against international good practices, the scope of "going-out" enterprises and the "Belt and Road" co-building countries' issuance of free trade offshore bonds will be further expanded.

Third, develop offshore financial leasing in a steady and orderly manner. Building on the existing pilot, the scope of qualified leasing companies, eligible leased objects, and overseas lessees will be expanded. The cross-border transfer of leasing assets and the inter-bank foreign exchange settlement of leasing income will be supported.

Fourth, develop offshore commodity trading in a steady and orderly manner. Commodity futures and options products, commodity index products, and other related derivatives will be explored, and the docking of onshore and offshore commodity markets will be promoted.

Fifth, develop offshore insurance in a steady and orderly manner. Reasonable offshore insurance demand will be supported, and the establishment of qualified offshore insurance intermediaries will be encouraged.

Sixth, develop offshore asset management in a steady and orderly manner. Qualified financial institutions, securities companies, fund management companies, futures companies, and bank wealth management subsidiaries will be supported in establishing offshore wealth management and asset management subsidiaries in the Pudong New Area. They will also be supported in cooperating with overseas institutions to launch cross-border asset management products, expand cross-border investment of qualified domestic limited partners (QDLP), qualified foreign limited partners (QFLP), and other businesses, and explore the development of more convenient cross-border investment and financing channels.