A teacher from an elementary school in Southwest China's Chongqing shows students  a 100-yuan bank note featuring the Chang'e-5 lunar probe, which returned to Earth on Thursday after completing its 23-day mission. Photo: VCG

China on Monday unveiled measures to streamline cross-border yuan settlements and improve the management of cross-border investment and fundraising denominated in the yuan, as part of efforts to steady investment and exports. 

The new measures, scheduled to come into effect on February 4, were jointly announced by the People's Bank of China (PBC), the country's central bank, and five other government departments including the National Development and Reform Commission, the Ministry of Commerce and the State Administration of Foreign Exchange. 

Domestic banks will be allowed to review legally effective electronic documents submitted by companies to handle cross-border yuan settlements under the current account, according to the soon-to-be measures, which also envision streamlining centralized cross-border yuan collections or payments for transnational corporations under the current account. 

The push is also intended to partially ease limits on yuan use under the capital account, facilitate reinvestment by foreign companies in the Chinese mainland, and repeal requirements concerning special deposit accounts required for foreign direct investment, among measures to improve the management of cross-border yuan investment and fundraising.

In a statement outlining the new measures, the central bank said it will strengthen business guidance for commercial banks, have cross-border yuan services play their part in serving the real economy, and facilitate trade and investment. 

The country's exports surged 21.1 percent year-on-year in November, accelerating from a gain of 11.4 percent in October, Chinese customs data showed. 

Under the new measures, domestic banks can also handle cross-border yuan settlements under the current account for individuals, simplifying cross-border collections and payments of personal emoluments among other legally compliant incomes.

Chinese mainland banks are also permitted to open yuan settlement accounts for Hong Kong and Macao residents, per Monday's announcement, which called for the banks to enrich their portfolios of yuan-denominated financial products. 

Global Times