Beyond COVID-19: Crisis response or road to recovery?
Crisis response or road to recovery?
On February 14, 2020, the People's Bank of China, the China Banking and Insurance Regulatory Commission (the CBIRC), the China Securities Regulatory Commission, the State Administration of Foreign Exchange and the Shanghai Municipal Government jointly issued the Opinions on Further Accelerating the Establishment of An International Financial Centre in Shanghai and Supporting the Development of Economic and Financial Integration in the Yangtze River Delta (in Chinese 《关于进一步加快推进上海国际金融中心建设和金融支持长三角一体化发展的意见》) (the Opinions). The Opinions include various detailed measures to further promote the opening up of and the regulatory reforms in the financial sectors in Shanghai.
According to the Opinions, the newly established Lin-Gang Special Area in Shanghai will focus on the development of the financial services, science innovation and FinTech industries. Entities established within the Lin-Gang Special Area may enjoy greater convenience and flexibilities in the cross-border transfer and use of Renminbi sourced offshore through foreign direct investment, debt financing and IPO. A pilot program on Renminbi-foreign currency consolidated cash pooling will also be explored – currently, cash pooling of Renminbi and foreign currency of qualified multinational companies is still subject to two different regimes in China.
In addition to the above, various national initiatives to further open up the financial market will first be rolled out in Shanghai, specific opening-up measures include:
Apart from the detailed rules, the Opinions also explicitly provide that Shanghai will pioneer the implementation of the financial policies applicable in the various pilot free trade zones, as well as the various financial supportive rules to be promulgated by the national financial administrative authorities. It is anticipated that Shanghai will continue to take a leading role in implementing financial regulatory reforms in the country.
As the global aviation industry looks towards post-pandemic recovery and less turbulent skies, it is the topic of decarbonisation that is increasingly top of everyone’s agenda. There have been a number of eye-catching announcements around the world in recent weeks, from United Airlines announcing its intention to purchase 100 electric aircraft, an increased focus on the use of sustainable aviation fuel (SAF) from several airlines, and Korean Air utilising the green bond markets.
© Norton Rose Fulbright LLP 2021