Deepen the Capital Account Administration Reform to Facilitate...
Title: Deepen the Capital Account Administration Reform to Facilitate Cross-Border Investment and Financing
China Forex: Under the background of the current domestic and international economic and financial situation，what is the general plan for foreign exchange administration under the Capital Account in 2022?
Zha Xiaoyang: In 2022，foreign exchange administration under the capital account will be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era，and fully implement the spirit of the 19th National Congress of the Communist Party of China (CPC)，all the previous plenary sessions of the 19th National Congress and the Central Economic Working Conference. We will seek for progress while maintaining stability，implement the new development concept completely，accurately and comprehensively，accelerate the construction of a new development pattern，coordinate development and security，and promote a stable economic growth. We will continue to deepen reforms，improve the institutions and increase favorable policies for capital accounts，streamline regulations and delegate more powers and optimize management，facilitate the high-quality development of the real economy，adhere to bottom-line approach and work actively to prevent and mitigate risks. We aim to embrace the Party's 20th National Congress with actions.
China Forex: Many efforts were made in 2021 to deepen the reform and promote a high-level opening of the foreign exchange administration under the capital account. What other measures will be introduced in 2022?
Zha Xiaoyang: In 2021，we have made a lot of progress under the guidance of the party group and SAFE’s leadership while considering the new development stage. We implemented a new development concept，built a new development pattern，continued the Capital Account administration reform，and promoted a high-level opening of the capital account. We strengthened the overall opening design for the capital account and carried out researches on that of China’s capital account. With the approval of the State Council，four high-level opening pilots for cross-border trade and investment have been launched，for instance，the Lin-gang Special Area of Shanghai Free Trade Zone. Moreover，we improved the regulation of Qualified Domestic Institutional Investor (QDII) and the regular distribution mechanism of quotas. Apart from this，we also promoted “Southbound Trading” for bond markets and Cross-border Wealth Management Connect. In 2022，further efforts will be made to deepen reforms，improve the institution，and increase favorable policies for foreign exchange administration under the capital account.
Firstly，implementing the pilot policies of high-level opening up of cross-border trade and investment. We will implement the decisions and plans of the State Council to ensure the implementation of high-level overseas pilot programs for cross-border trade and investment in four regions. We will learn from the pilot experiences，support the development of special regions according to local conditions，and take full advantages of the national science and technology policies and regional policies.
Secondly，steadily expanding the pilot program of integrated domestic and foreign currency capital pools for multinational companies. We will evaluate the effectiveness and strengthen the monitoring and analysis of the pilot program，optimize relevant policies according to the needs of banks and enterprises，and expand the pilot program in due time.
Thirdly，continuing to promote the two-way opening of the domestic financial market. We will improve the management of panda bond funds，and issue the Regulations on the Cross-border Fund Management of Domestic Bond Issuance by Overseas I