The Chinese government has given the green-light for five banks to open so-called Free Trade Accounts in the Shanghai Free Trade Zone.
The Free Trade Accounts will allow oversees funds to flow directly into the accounts of banks in the FTZ.
However, the funds are not allowed out into the rest of the mainland market.
The banks being allowed to open the new accounts include the Bank of China, China Construction Bank, the Shanghai Pudong Development Bank, Bank of Shanghai and the Industrial and Commercial Bank of China.
Cao Qi is with ICBC's Shanghai branch.
"The procedure of capital inflow or outflow used to be very difficult. But now, with the integration of three markets and three channels, meaning those inside and outside the free trade zone and that outside China, enterprises can conveniently manage the flow of their global resources, including fund transfers."
The move is expected to make the process of cross-border money transfers much easier for both domestic and foreign firms.
Free trade account launched for Shanghai FTZ
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