Yunnan rapidly becoming regional financial centre

In the past two years, since the construction of the Yunnan Border Pilot Zone for Comprehensive Financial Reforms started, RMB cross-border lending has played an important role in serving the real economy while helping business operations and supporting the construction and development of Yunnan. As of the end of June, a total of seven businesses had registered 11 RMB cross-border loan contracts through the Yunnan Border Pilot Zone for Comprehensive Financial Reforms. These involved 2.478 billion yuan. Eight withdrawals have also been handled, amounting to 964 million yuan. The loan terms were mostly one-year and the main sources of the loans were from Singapore and Malaysia. The introduction of this business has provided a channel of circulation for onshore and offshore RMB funds. Now, enterprises can make full use of both domestic and foreign markets to pool funds, improve the efficiency of financial operations and fully enjoy favourable policies brought by the internationalization of RMB.

The opening up of the banking sector has achieved good results. So far, the number of foreign banks has increased to seven in Yunnan. In addition, Lao China Bank, a holding bank of Fudian Bank, went into business in Vientiane, Laos last January as the first operational joint-banking institution set up by a Chinese city commercial bank in another country.

Yunnan’s position as a financial radiation centre for South Asia and Southeast Asia continues to be enhanced. In 1H15, the Agricultural Bank of China set up the Pan-Asian Operation Centre in Kunming and three sub-centres in Hekou (Honghe), Mohan (Xishuangbanna) and Ruili (Dehong), respectively.

With the introduction of the non-major currency clearing model, the Agricultural Bank of China has become the first banking institution to delegate the clearing function of the head office to provincial branches. Fudian Bank has achieved full coverage of financial services for the Ruili, Hekou and Mohan ports that border Myanmar, Vietnam and Laos respectively. It will take full advantage of its business ties with Lao China Bank to offer direct RMB cross-border remittance services and pro-mote the construction of the Mohan-Boten Economic Co-operation Zone. Shanghai Pu-dong Development Bank also set up an Offshore Business Innovation Centre in Kunming this April, which will provide Yunnan enterprises that are looking to “go global” with a package of offshore financing and knowledge-leveraging ser-vices. Currently, the Yunnan Branch of China Construction Bank is applying to its head office for the establishment of a Pan-Asian cross-border business centre to promote bilateral local currency clearing and cross-border financing with neighbouring countries.

Yunnan rapidly becoming regional financial centre

In the past two years, since the construction of the Yunnan Border Pilot Zone for Comprehensive Financial Reforms started, RMB cross-border lending has played an important role in serving the real economy while helping business operations and supporting the construction and development of Yunnan. As of the end of June, a total of seven businesses had registered 11 RMB cross-border loan contracts through the Yunnan Border Pilot Zone for Comprehensive Financial Reforms. These involved 2.478 billion yuan. Eight withdrawals have also been handled, amounting to 964 million yuan. The loan terms were mostly one-year and the main sources of the loans were from Singapore and Malaysia. The introduction of this business has provided a channel of circulation for onshore and offshore RMB funds. Now, enterprises can make full use of both domestic and foreign markets to pool funds, improve the efficiency of financial operations and fully enjoy favourable policies brought by the internationalization of RMB. The opening up of the banking sector has achieved good results. So far, the number of foreign banks has increased to seven in Yunnan. In addition, Lao China Bank, a holding bank of Fudian Bank, went into business in Vientiane, Laos last January as the first operational joint-banking institution set up by a Chinese city commercial bank in another country. Yunnans position as a financial radiation centre for South Asia and Southeast Asia continues to be enhanced. In 1H15, the Agricultural Bank of China set up the Pan-Asian Operation Centre in Kunming and three sub-centres in Hekou (Honghe), Mohan (Xishuangbanna) and Ruili (Dehong), respectively. With the introduction of the non-major currency clearing model, the Agricultural Bank of China has become the first banking institution to delegate the clearing function of the head office to provincial branches. Fudian Bank has achieved full coverage of financial services for the Ruili, Hekou and Mohan ports that border Myanmar, Vietnam and Laos respectively. It will take full advantage of its business ties with Lao China Bank to offer direct RMB cross-border remittance services and pro-mote the construction of the Mohan-Boten Economic Co-operation Zone. Shanghai Pu-dong Development Bank also set up an Offshore Business Innovation Centre in Kunming this April, which will provide Yunnan enterprises that are looking to go global with a package of offshore financing and knowledge-leveraging ser-vices. Currently, the Yunnan Branch of China Construction Bank is applying to its head office for the establishment of a Pan-Asian cross-border business centre to promote bilateral local currency clearing and cross-border financing with neighbouring countries.