SAFE approves CFAE to engage in cross-border transfer of non-performing assets of banks
source:CFAE       time:2020-10-23

The State Council Information Office held a press conference on October 23rd to introduce foreign-exchange receipts and expenditure data for the first three quarters of 2020. At the meeting, Ms. Wang Chunying, Deputy Administrator and Spokeswoman of the State Administration of Foreign Exchange (SAFE), introduced the specific measures taken by SAFE to support the construction of China (Beijing) Pilot Free Trade Zone.

According to Ms. Wang, with regard to foreign exchange management policies for service trade innovation and development pilot areas, SAFE has been dedicated to facilitating foreign exchange transactions in such areas based on the management principle of facticity, convenience and risk prevention as well as the philosophy of making small-amount transactions convenient and large-amount transactions well regulated.

As for innovative measures for China (Beijing) Pilot Free Trade Zone, Ms. Wang said that the pilot program for cross-border transfer of non-performing assets has been carried out in Beijing, under which, CFAE has been approved to engage in cross-border transfer of non-performing assets of banks in order to further liquidate non-performing assets of banks and better support the development of the real economy.

CFAE launched cross-border transfer of non-performing assets, and brought in well-established value investing concepts from foreign professional non-performing assets investment institutions, which will help enhance the efficiency of resource allocation in the domestic financial market and the ability to serve the real economy. In the future, CFAE will further accelerate and optimize the construction of its specialized platform for trading of non-performing assets and continue to enhance its ability to gather resources and disclose information, in an attempt to drive the market-based transfer of non-performing assets and promote optimized allocation of financial assets.