Core Viewpoint - The State Administration of Foreign Exchange (SAFE) has announced new policies to facilitate foreign exchange fund settlement and support stable foreign trade development, introducing nine measures to deepen trade foreign exchange management reform and ease cross-border trade operations [1][2]. Group 1: Trade Facilitation Policies - The policies will expand the pilot areas and types of businesses involved in trade facilitation, covering more regions with genuine needs and compliant business entities [1]. - The measures include broadening the types of businesses eligible for net settlement of current account funds, allowing for the net settlement of service fees related to goods trade, such as transportation and storage [1]. Group 2: Support for Innovative Trade Models - The new policies aim to support innovative trade models by enabling banks to include more small and medium-sized enterprises (SMEs) in the category of quality enterprises eligible for favorable trade fund settlement policies [2]. - Banks are encouraged to shift from traditional document review methods to automated batch reviews based on electronic transaction information provided by foreign trade service companies [2]. Group 3: Enhancing Service Trade Efficiency - The policies will relax management of service trade advance payment businesses, allowing domestic companies to directly handle related fund payments through banks [2]. - Support will be provided for engineering companies to centrally allocate funds across countries and regions, effectively utilizing "idle" funds from overseas projects [2].

Core Viewpoint - The State Administration of Foreign Exchange (SAFE) has issued a notification to further facilitate foreign exchange fund settlement and support stable development of foreign trade through nine policy measures aimed at optimizing convenience policies, supporting new trade business models, and enhancing the efficiency of fund usage for trade enterprises [1][14]. Group 1: Expansion of High-Level Open Pilot Areas - The pilot areas for cross-border trade high-level openness will be expanded to include more regions with genuine needs and compliant business entities, building on the success of existing pilot areas [3][15][16]. - Since 2022, the pilot policy has been effective, covering 11 regions and facilitating approximately $1.7 trillion in current account pilot business, significantly improving fund settlement efficiency for compliant enterprises [3][4]. Group 2: Simplification of Settlement Procedures - The notification broadens the types of net settlement for cross-border trade, allowing for the offsetting of payments related to transportation, warehousing, maintenance, and compensation, thereby reducing settlement costs [4][17]. - It simplifies the procedures for multinational companies regarding centralized payment and net settlement of current account funds, allowing banks to streamline document review processes for qualified enterprises [4][18]. Group 3: Support for Quality Enterprises - The notification facilitates foreign exchange for expatriate employees' salaries, allowing banks to determine the amount based on salary materials provided by quality enterprises, significantly improving processing efficiency [5][19]. Group 4: Encouragement of New Trade Business Models - The notification encourages the inclusion of more new trade business entities in the convenience policy framework, leveraging e-commerce platforms and foreign trade service companies to recommend small and medium-sized enterprises for better trade settlement policies [7][21]. - It optimizes foreign exchange fund settlement for foreign trade service enterprises by allowing banks to use electronic transaction information for automatic processing, enhancing efficiency [8][22]. Group 5: Special Foreign Exchange Business Handling - The notification establishes a mechanism for handling special foreign exchange business for current accounts, allowing banks to efficiently process complex and innovative foreign exchange transactions with legitimate trading backgrounds [8][23]. Group 6: Enhancing Fund Usage Efficiency - The notification relaxes management of service trade advance payment, allowing domestic enterprises to directly handle related service fees through banks, thus simplifying settlement procedures [10][25]. - It supports overseas project contractors in managing funds centrally across different countries and projects, improving fund allocation and reducing foreign exchange risks [11][25].