Yuan settlements for Lingang enterprises

The Lingang Special Area issued details on Thursday to enable banks to provide cross-border yuan settlement for “quality companies,” which will allow qualified enterprises in Lingang to use the yuan to settle cross-border transactions.

Banks can facilitate cross-border yuan settlement for Lingang-based enterprises with a good business performance, mainly in the fields of integrated circuits, artificial intelligence, biomedicine, aerospace, new energy and intelligent vehicles, smart manufacturing, high-end equipment and other key sectors.

Qualified companies do not need to submit paperwork in advance as proof of transactions in line with the new policies.

This latest effort has been made by the Shanghai headquarters of People’s Bank of China, Shanghai Financial Regulatory Bureau, Lingang Special Area Administrative Committee and banks to serve the real economy and promote trade and investment in the special area of the China (Shanghai) Pilot Free Trade Zone. It also allows qualified enterprises to use yuan income generated on the basis of the following items: yuan capital, cross-border financing and the repatriation of funds raised from overseas listing.

New project in Lingang

Also on Thursday, GalaxyCore (Hong Kong) Co signed an agreement with the Lingang committee to invest US$2.2 billion in the 12-inch CIS integrated circuit R&D and industrialization project.

The first stage of the project will be completed next year. At present, a number of integrated circuit enterprises have gathered in Lingang, involving the whole industrial chain of design, manufacturing, packaging, testing, materials and equipment.

The participation of GalaxyCore will help to improve the industrial ecology of integrated circuits in Lingang, promote the industrial agglomeration of integrated circuit materials, equipment, chip manufacturing and other fields in the new area, and promote the industrial scale, according to the Lingang authority.

Apart from the GalaxyCore project, enterprises have reached agreements on another 12 new industrial projects this year with the Lingang authority with a total investment of more than 20 billion yuan.

The projects involved innovative breakthroughs of long-standing bottlenecks, including battery management systems for new energy vehicles, materials, third-generation semiconductors and 5G applications.

Construction of the buildings involved in these projects will be carried out within the year.

The Shanghai government has also authorized 517 administrative powers for the Lingang committee, including in the fields of investment, talent, trade and finance, scientific and technological innovation, urban planning and natural resources, construction and transport, ecology and sanitation, culture and tourism.

In particular, the Lingang authority is entitled to introduce talent from out of town and grant permanent residence for overseas returnees and their families.