PBoC announces cross-border settlement pilot

The People's Bank of China (PBoC) released detailed rules of a pilot scheme to allow companies to settle their cross-border trades in renminbi and give them tax rebates, the South China Morning Post reported. Under the scheme, qualified firms in Shanghai and four cities in Guangdong province could settle trades in renminbi with their trading partners in Hong Kong, Macau and the 10 ASEAN countries. The program is a move to promote the wider use of the currency. Although the PBoC has not said how many companies will be qualified in the first round of approvals, media reports have suggested that about 440 firms will be included.