(Yicai Global) Jan. 18 -- The Shanghai arm of China's foreign exchange regulator has spoken about opening the capital account and carrying out a cross-border trade and investment pilot.

It is necessary to prudently promote the high-level opening up of the capital account, explore a more convenient cross-border funds management system, and steadily develop cross-border capital pool business for multinational companies, the eastern branch of the State Administration of Foreign Exchange said during a work conference recently. At the event, the bureau laid out key tasks for the year.

The SAFE proposed promoting regional forex management reform, trade and investment liberalization, as well as the development of new offshore trade. It suggested consolidating databases for foreign exchange supervision and strengthening the management of financial institutions. It expressed its support to the construction of Shanghai as an international financial center, and its focus on key areas and subjects to prevent and resolve cross-border capital flow risks.

Shanghai's role as an international financial and capital hub is becoming even more pronounced, according to the SAFE.

Last year, the eastern city's forex settlement continued to expand to hit a record high. Foreign-related receipts and payments jumped nearly 40 percent in 2021 from a year ago, accounting for about one-third of the country’s total. Capital and financial accounts made up about 65 percent of the city's annual tally. The scale of foreign exchange derivatives rose over 50 percent.

The agency mentioned commercial banks. Lenders should implement various facilitation policies, improve their foreign trade-related receipts and payments services, stimulate market vitality, and build a "firewall" for cross-border capital flows, per the SAFE.

Editor: Emmi Laine, Xiao Yi