On December 5, the "Implementation Measures for the Functional Upgrade of Free Trade Accounts in the Shanghai Pilot Free Trade Zone (Trial)" issued by the People's Bank of China Shanghai Headquarters came into effect. The trial measures introduce significant enhancements to the existing free trade account system, further improving the liberalization and facilitation of cross-border trade and investment.
On the first day of implementation, participating domestic banks—including Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), Bank of China (BOC), China Construction Bank (CCB), and Bank of Communications (BoCom)—as well as foreign banks such as HSBC China and Citigroup China, successfully completed their first transactions under the upgraded system.
**ICBC** On December 5, ICBC facilitated a cross-border RMB loan for an advanced manufacturing enterprise using the upgraded free trade account, marking its first transaction under the new policy. The funds will be used for domestic procurement, enabling seamless cross-border RMB flows. "ICBC Shanghai Branch, as one of the first pilot banks, actively promoted the policy to eligible clients, receiving strong responses from advanced manufacturing and high-tech firms," said a representative from ICBC Shanghai. The bank adopted a 'document-free' approach for cross-border capital transactions under the upgraded system, achieving real-time settlement.
**ABC** A leading semiconductor manufacturer was among the first beneficiaries of ABC’s upgraded free trade account services on December 5. The company, a top player in China’s chip industry and a unicorn enterprise, provides critical support for high-end automotive chip production. "The upgraded system allows fund transfers with just payment instructions, eliminating the need for contracts or invoices, significantly improving efficiency and supporting China’s semiconductor self-sufficiency," the company stated.
**BOC** On the same day, BOC assisted five companies in conducting cross-border financing and overseas loans under the upgraded free trade accounts, covering industries such as semiconductors, petrochemicals, and automotive. Additionally, BOC successfully piloted foreign currency transfers between non-resident free trade accounts (FTN) and domestic accounts, facilitating smoother settlements for international businesses.
**CCB** CCB processed upgraded free trade account transactions for multiple key enterprises on the first day, supporting their global operations. One such company, Orient International Holding, saw improved cross-border payment efficiency. "This not only provides financial momentum for corporate strategy but also strengthens risk resilience in international operations," said a CCB Shanghai representative.
**BoCom** BoCom completed transactions for two enterprises under the upgraded system on December 5. "The selection prioritized multinational corporations, with a focus on operational strength, financial performance, and genuine cross-border needs," explained a BoCom Shanghai executive.
**HSBC China** HSBC China announced on December 5 that it had opened an upgraded free trade account for a multinational company in the Shanghai FTZ. "This policy is a multiplier for cross-border trade and investment liberalization," said Zeng Su, HSBC China’s Managing Director of Global Payment Solutions. "We will explore innovative financial services to better meet corporate needs."
**Citigroup China** Citigroup China opened upgraded accounts for four corporate clients in Shanghai on the first day. "Shanghai’s FTZ is at the forefront of financial reform, and this upgrade will enhance cross-border efficiency," said Zhang Wenjie, Citigroup China CEO, reaffirming the bank’s commitment to China’s financial market opening.
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