Bank of Communications Facilitates First National Free Trade Offshore Bond Financial Judicial Test Case Conclusion

On July 24, the Shanghai Financial Court issued a judicial opinion on the first national case in the foreign financial market (free trade offshore bonds), marking the official conclusion of this test case.

This case was jointly implemented by Bank of Communications Trust Co., Ltd. and Bank of Communications Shanghai Branch, in collaboration with the Shanghai Branch of the China Central Depository & Clearing Co., Ltd. and Junhe Law Firm.

Bank of Communications leveraged its mature business experience in the free trade offshore bond and offshore bond trust sectors to provide the business scenario and practical support for this test.

At the 2026 Lujiazui Forum, five departments including the People's Bank of China, together with the Shanghai Municipal People's Government, issued the "Shanghai International Financial Center Development Offshore Financial Action Plan," which explicitly proposes "accelerating the high-quality development of free trade offshore bonds based on benchmarking international best practices."

This judicial case arrives at a critical juncture of policy implementation, systematically clarifying core legal issues such as the digital issuance of free trade offshore bonds, trust structure establishment, investor rights protection, and collateral disposal. It fills several regulatory gaps in foreign-related financial legal systems, which is expected to further enhance global investors' confidence in Shanghai's offshore financial innovation and development.

While driving innovative practices in free trade offshore bond business, Bank of Communications has placed great emphasis on theoretical research and market cultivation in this area. The bank, in collaboration with the Lin-gang Special Area Administration of the China (Shanghai) Pilot Free Trade Zone, jointly established the Shanghai Free Trade Offshore Bond Innovation Laboratory. It has launched six major research projects, including offshore bond business for banks and non-bank institutions and secondary market trading, all of which have achieved phased results.

Simultaneously, Bank of Communications has deeply participated in the legislative work for Shanghai's free trade offshore bond finance, cooperating with the Shanghai Municipal Financial Office to promote the issuance of the "Several Provisions on the Development of Free Trade Offshore Bond Business in the Pudong New Area of Shanghai," using frontline practice to drive the improvement of industry regulations.

This case test is a landmark achievement of Bank of Communications empowering institutional optimization through free trade offshore bond business practice.

In the next phase, with the support of regulatory authorities, Bank of Communications will continue to leverage the advantages of its "five-in-one" comprehensive financial service system for free trade offshore bonds. It will coordinate theoretical research with business practice, comprehensively participate in free trade offshore bond issuance, investment, underwriting, trust, clearing, and settlement services, effectively promote the high-quality development of the free trade offshore bond business, and contribute financial strength to enhancing the level of Shanghai's international financial center construction.