2 1 Shi Ji Jing Ji Bao Dao·2025-12-05 16:45Core Viewpoint - The People's Bank of China has launched a financial reform policy to optimize and upgrade the functions of free trade accounts, which is now in practical application as of December 5, 2025 [2][3]. Group 1: Policy Implementation - The upgraded free trade account allows qualified enterprises to manage cross-border funds with a certain degree of control while enabling free receipt and payment of funds across borders [2]. - The implementation of the policy is supported by the Shanghai Free Trade Zone's new guidelines, which enhance the existing free trade account system [2]. Group 2: Banking Operations - Industrial and Commercial Bank of China (ICBC) Shanghai Branch has successfully processed cross-border RMB loans and USD payment for goods using the upgraded free trade account [2]. - The bank utilized a "no-review" method for capital project cross-border debt transactions, improving the efficiency of cross-border financial services in the Shanghai Free Trade Zone [3]. Group 3: Business Impact - The upgraded free trade account is expected to facilitate the cross-border flow of RMB funds, with enterprises indicating plans to use it as their primary account for trade settlements [3]. - ICBC Shanghai Branch aims to promote the upgraded free trade account model to enhance cross-border trade and investment liberalization, contributing to the internationalization of the RMB [3].