The People's Bank of China (PBOC) approved the establishment of the RMB International Investment and Loan Fund in Beijing with an official reply on December 21, 2020. This is another measure taken by the PBOC to support the development of the Comprehensive Demonstration Zone for Further Opening up the National Service Sector and the China (Beijing) Pilot Free Trade Zone.

The RMB International Investment and Loan Fund will maintain a global perspective while also highlighting the unique characteristics of Beijing, focus on institutional innovations, stress risk prevention, and leverage on market-oriented and professional operation modes. It will conduct RMB overseas direct investment and RMB overseas loans, while particularly focusing on encouraging outbound cooperation and transformation and upgrading of local enterprises of Beijing. The fund is expected to provide cross-border financial support to the creaction of the “dual circulation” new development pattern whereby domestic and foreign markets boost each other with the domestic market as the mainstay.

Moving forward, the RMB International Investment and Loan Fund will consistently explore useful experiences related to reforming and opening up the financial industry. It is expected to help more enterprises to participate deeply in international cooperation, and support the construction of Beijing as an international center for scientific and technological innovation, ultimately promoting the development of the Comprehensive Demonstration Zone for Further Opening up the National Service Sector and the China (Beijing) Pilot Free Trade Zone as well as the creation of the new development pattern.

(Note: Content source is from People's Daily Online)