Core Points - The "Financial Infrastructure Supervision and Administration Measures" has been approved by the People's Bank of China during its 9th executive meeting on May 23, 2025, and has received consent from the China Securities Regulatory Commission [1] - The new measures will come into effect on October 1, 2025 [1]

Core Viewpoint - The People's Bank of China has revised the "Rules for the Renminbi Cross-Border Payment System" to lower the entry barriers for international institutions, reflecting China's strategic commitment to promote the global use of the Renminbi [1][3]. Group 1: Regulatory Changes - The revised draft, open for public feedback until August 3, includes six chapters and thirty-one articles covering general provisions, account management, business processing, settlement mechanisms, risk management, and emergency response [1]. - The new rules allow foreign institutions to apply for direct participation in CIPS by designating qualified direct participants as their fund custodians, removing the previous requirement to use domestic banks [2][3]. Group 2: Operational Details - The draft emphasizes that operational institutions can open clearing accounts with the People's Bank of China for centralized storage of settlement funds, which must be accounted for separately from other funds [2]. - The rules specify that the clearing account cannot be overdrawn and must maintain a zero balance at the end of the day [2]. Group 3: Business Processing - Direct participants, particularly banks, must process payments based on customer instructions or through intermediaries, while financial market infrastructure participants must adhere to their transaction systems and cannot unilaterally expand their service scope [3]. - The revision aims to enhance the competitiveness of the cross-border payment system and reflects a proactive regulatory approach to market demands [3].

Core Viewpoint - The article discusses the recent issuance of the "Opinions on Supporting the Acceleration of Building Shanghai International Financial Center," which outlines six key measures aimed at enhancing Shanghai's competitiveness and influence as an international financial hub, with a focus on increasing financial internationalization [1][2][7]. Summary of Key Measures - **Deepening Financial Market Development**: The initiative aims to promote high-quality development of multi-tiered equity markets, enhance the positioning of the Sci-Tech Innovation Board, and support the establishment of a high-quality development demonstration zone for listed companies. It also emphasizes the development of a multi-tiered bond market and the establishment of a world-class futures exchange in Shanghai [3]. - **Enhancing Financial Institution Capabilities**: The plan includes attracting various domestic and foreign financial institutions, fostering strong and compliant financial holding companies, and increasing the global competitiveness of financial institutions through reforms [3][4]. - **Improving Financial Infrastructure**: The focus is on building an internationally leading financial infrastructure system, enhancing the cross-border payment and clearing system for the Renminbi, and developing the infrastructure for the gold market [3][4]. - **Expanding High-Level Financial Openness**: The measures aim to steadily expand institutional openness in the financial sector, facilitate cross-border trade and investment, and deepen cooperation in financing for the Belt and Road Initiative [4][9]. - **Enhancing Service Quality for the Real Economy**: The initiative includes establishing a financial reform pilot zone for technological innovation, developing green finance standards, and supporting the construction of a unified financing credit service platform [4][9]. - **Maintaining Financial Security Under Open Conditions**: The plan emphasizes the use of advanced technologies like blockchain and AI for risk assessment and prevention, establishing a monitoring and early warning system for cross-border capital flows [4][9]. Implementation and Coordination - The Central Financial Office will collaborate with the Shanghai municipal government and various financial regulatory bodies to establish a coordination mechanism for the implementation of these measures, ensuring that the decisions made by the central government regarding the construction of the Shanghai International Financial Center are effectively executed [5].

Group 1 - The central financial committee has issued opinions to support the acceleration of building Shanghai as an international financial center, emphasizing the need to strengthen financial infrastructure services [1] - The opinions highlight the importance of enhancing the cross-border payment and clearing system for the Renminbi [1] - There is a focus on improving the infrastructure of the gold market, including the establishment of an export supervision warehouse for the Shanghai Gold Exchange's international board [1]