Accelerating the construction of the Western Financial Center, Sichuan and Chongqing in Southwestern China have cultivated financial institutions to expand the local financial institution system.

"Sichuan and Chongqing have initially established a coordination system covering banking, insurance, investment, securities, financing guarantee, and other financial sectors, laying a solid foundation for regional financial integration," according to an officer of Chongqing Local Financial Supervision and Administration Bureau.

Efficient services in cross-border financing for innovative enterprises

In 2022, Chongqing approved the establishment of the China (Chongqing) Pilot Free Trade Zone (CFTZ) Branch of the Bank of Chongqing, the first branch of a local corporate bank in central and western China dedicated to serving the free trade zone.

Officially opened in February 2023, the bank branch has established a trade finance business compliance and risk control system, an operation and liquidation system, and a products and services system.

Through the integration of domestic and overseas businesses, the CFTZ Branch of the Bank of Chongqing has made constant efforts in CFTZ-related product innovation, system development, and resource guarantee to better meet the needs of customers for domestic and foreign currency settlement, cross-border investment, and financing, derivatives trading, and other specialized operations.

For example, the CFTZ Branch of the Bank of Chongqing has launched Chongqing's first cross-border financing business for specialized, sophisticated, distinctive, and innovative enterprises, providing them with more efficient services in cross-border financing.

In February 2023, the China (Chongqing) Pilot Free Trade Zone (CFTZ) Branch of the Bank of Chongqing was opened. (Photo/Chongqing Local Financial Supervision and Administration Bureau)

China's first cross-regional pilot Program on foreign debt facilitation

The Chongqing Foreign Exchange Management Department of the State Administration of Foreign Exchange (SAFE) and SAFE Sichuan Branch have officially launched China's first cross-regional pilot program on foreign debt facilitation.

The Chengdu-Chongqing pilot program on foreign debt facilitation will greatly facilitate locally qualified enterprises in the cross-regional business handling of cross-border financing, centralize the operation of cross-border funds of multinational corporations and propel the in-depth integration of local enterprises into international and domestic markets.

The program also harnesses domestic and foreign low-cost funds to serve the real economy and encourage local qualified multinational corporations to establish capital centers, financing centers, and settlement centers in the region, supporting the development of the Western Financial Center.

The Chengdu-Chongqing pilot program on foreign debt facilitation will greatly promote enterprises to handle cross-border financing. (Photo/Chongqing Daily)

Moreover, Chongqing and Chengdu have simultaneously launched a pilot program of the domestic and foreign currency integrated bank settlement account system.

This allows local enterprises to open domestic and foreign currency bank settlement accounts, facilitating their unified fund management and reducing their financial costs.

According to the latest data from Chongqing Local Financial Supervision and Administration Bureau, Chongqing has 1,935 financial institutions of all kinds. Among them are 478 "banking, securities, and insurance" financial institutions and 609 local financial organizations, achieving full coverage of financial licenses.