The Shanghai headquarters of the People's Bank of China: Continue to prevent risks in virtual currency transactions and ICO token issuance, and urge rectification of newly discovered illegal businesses

On August 3, the Shanghai headquarters of the People's Bank of China held a work meeting for the second half of 2021. The meeting required that the risks of virtual currency transactions and ICO token issuance should be continuously prevented, and newly discovered illegal businesses should be supervised for rectification. Cooperate with local governments to promote the withdrawal of online lending institutions in a stable and orderly manner. Maintain a high-pressure crackdown on illegal foreign exchange transactions such as online foreign exchange speculation and underground banks. Strengthen supervision, law enforcement inspections and penalties in the fields of payment settlement, anti-money laundering, credit reporting, cross-border funds, etc., and have "zero tolerance" for all kinds of illegal and irregular behaviors.

The meeting pointed out that since the beginning of this year, a prudent monetary policy has been effectively implemented to accurately and effectively serve the real economy in Shanghai. According to the requirements of the head office, credit growth should be reasonably controlled and the credit structure should be optimized. Financial institutions should be guided to increase financial support for key areas such as energy conservation and environmental protection, advanced manufacturing, and weak links such as new agricultural operators and individual industrial and commercial households. Financial institutions should be supervised to continue to make good use of the two direct tools and continue to play the role of precise drip irrigation such as re-lending and re-discounting. Supply chain bills and standardized bills should be actively promoted to broaden the bill financing channels for small and medium-sized enterprises. The accounts receivable financing service platform should be promoted to support accounts receivable pledge financing. The financing of small and micro enterprises in Shanghai has achieved remarkable results in "increase in quantity, expansion in scope, and reduction in price", and the number and proportion of first-time borrowers have increased significantly. Continue to deepen financial reform, opening up and innovation, and make efforts in multiple areas to support the construction of Shanghai as a "people's city". Actively cooperate with Shanghai to do a good job in the research and preparation of the "14th Five-Year Plan" development plan and the special plans for the development of the financial industry such as Shanghai International Financial Center and Lingang New Area Financial Pilot during the "14th Five-Year Plan" period. Cooperate with the head office and Shanghai to study and establish a working mechanism to support Pudong's high-level reform and opening up, carry out forward-looking research, and make good policy and program reserves. The relevant municipal departments took the lead in issuing the "Guiding Opinions on Regulating the Development of Shanghai Supply Chain Finance" to promote the free flow of capital factors in the Yangtze River Delta.

We will steadily advance financial supervision and risk prevention and control, and maintain the overall stability of local finance. We will further play the leading role of the local coordination mechanism of the Financial Committee Office, promptly convey and implement the spirit of the "Accountability Measures for Preventing and Resolving Major Financial Risks" and other important documents of the Financial Committee, consolidate the risk management responsibilities of all parties, and further enhance the joint efforts of work. We will continue to prevent risks in virtual currency transactions and ICO token issuance, and urge the rectification of newly discovered illegal businesses. We will cooperate with local governments to promote the withdrawal of online lending institutions in a stable and orderly manner. We will maintain a high-pressure crackdown on illegal foreign exchange transactions such as online foreign exchange speculation and underground banks. We will strengthen supervision, law enforcement inspections and penalties in the fields of payment settlement, anti-money laundering, credit reporting, cross-border funds, etc., and have "zero tolerance" for all kinds of illegal and irregular behaviors.

Financial services management has been improved in quality and efficiency, and the sense of gain and satisfaction of market entities has been continuously improved. We will continue to promote the pilot projects of facilitating foreign exchange receipts and payments for trade, facilitating capital project income payments, cross-border investment pilot projects for equity investment funds, and foreign debt facilitation pilot projects. We will launch a pilot project to facilitate the purchase and payment of foreign exchange for salaries of foreign talents. We will vigorously support the development of new trade formats. We will implement a pilot project for simplified account opening services for small and micro enterprises, significantly reducing the time required for account opening. We will expand the scope of the pilot project for household file building and "credit villages". We will promote the pilot project of unified registration of movable property guarantees. We will continue to build the 12363 "heartwarming hotline" and promote the deepening of the diversified resolution mechanism for financial disputes.

The meeting required that in the second half of 2021, the Shanghai headquarters should make every effort to complete various work tasks in the second half of the year:

First, we will implement the "two safeguards" through strong political supervision and strengthen supervision of major tasks such as supporting Pudong's high-level reform and opening up, stabilizing enterprises and ensuring employment, and improving the green finance policy framework.

Second, we will make every effort to promote financial support for Pudong's high-level reform and opening up, and make practical moves and open up a new situation. We will thoroughly implement the central government's "Opinions on Supporting Pudong New Area's High-Level Reform and Opening Up and Building a Leading Area for Socialist Modernization Construction", actively cooperate with the head office and Shanghai to do a good job in related work, and further deepen financial reform and innovation. We will strive to promote greater progress in financial support for the high-quality development of the Yangtze River Delta integration. We will continue to steadily and prudently promote the internationalization of the RMB.

Third, we will accelerate the improvement of the system and mechanism for financial services to support the high-quality development of the real economy. In accordance with the unified deployment of the head office, we will implement sound monetary and credit policies, manage and use various structural policy tools and funds well, and effectively increase financial support for key areas such as small and micro enterprises, green and low-carbon, and scientific and technological innovation. We will solidly advance various work to support the development of green finance in the Yangtze River Delta. We will carry out in-depth projects to enhance the financial service capabilities of small, medium and micro enterprises. We will continue to steadily implement prudent management of real estate finance and promote the balanced development of finance, real estate and the real economy.

Fourth, strengthen financial supervision and risk prevention and control. Relying on the local coordination mechanism of the Financial Committee Office (Shanghai), consolidate the responsibilities of all parties in handling financial risks. Further improve the relevant working mechanisms and systems for the supervision of financial holding companies. Strengthen daily monitoring of financial risks, and do a good job in annual central bank ratings, trust, securities, and insurance industry stability assessments.

Fifth, deepen the reform and opening up of foreign exchange management. Implement all the facilitation policies that have been issued, and further expand the pilot program of facilitating foreign exchange receipts and payments for trade. Actively support the development of new forms and models of foreign trade, and continue to promote the facilitation of personal foreign exchange business. Strengthen policy research and publicity, help foreign trade enterprises establish a risk-neutral concept, and enhance exchange rate risk management capabilities. Severely crack down on illegal and irregular activities in the foreign exchange field, such as underground banks, cross-border gambling, and online foreign exchange speculation.

Sixth, we will continue to promote the management of financial services to benefit the people. We will optimize bank account services, fully promote the application of electronic business licenses, and provide services for opening personal bank accounts for specific groups. We will implement the reduction of payment fees for small and micro enterprises and individual industrial and commercial households, and effectively benefit the real economy. We will continue to rectify the behavior of refusing to accept RMB cash. We will do a solid job in anti-money laundering supervision and promote the conviction of money laundering. We will standardize the supervision and management of corporate credit reporting agencies and rating agencies, and further promote the construction of the rural credit system. We will continue to promote pilot projects for financial technology innovation supervision. We will increase efforts to protect the rights and interests of financial consumers.