Mucahithan Avcioglu
17 June 2026•Update: 17 June 2026
China has unveiled new measures to accelerate Shanghai’s development as a global financial center and promote wider international use of the yuan, the South China Morning Post reported Wednesday.
Speaking at the annual Lujiazui Forum in Shanghai, People’s Bank of China Governor Pan Gongsheng said authorities would launch a pilot program for offshore-yuan foreign-exchange trading in the city.
The plan is aimed at supporting the “two-way opening” of China’s financial markets and helping Shanghai become a global center for yuan asset allocation and risk management, according to the report.
Pan said the central bank would also establish repurchase facilities for overseas central banks and monetary authorities, allowing them to use high-grade assets such as Chinese government bonds in repurchase agreements.
The move is designed to support yuan liquidity management and encourage foreign institutions to hold and trade yuan-denominated assets, according to the report.
Under the plan, six Chinese lenders will be authorized to conduct offshore-yuan foreign-exchange trading in the Shanghai Free Trade Zone through the China Foreign Exchange Trade System.
The banks are Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Citic Bank.
Top Chinese financial regulators used the forum to emphasize Shanghai’s role as a key channel for offshore finance and foreign participation in China’s domestic markets.
The measures come as Beijing seeks to strengthen the yuan’s global role and present China’s financial system as a source of stability amid volatility in global markets.
Shanghai has long been central to China’s efforts to deepen capital-market reforms, attract foreign financial institutions, and expand cross-border yuan settlement.
Chinese officials have increasingly promoted the yuan’s international use in trade, investment, and reserve management, particularly as emerging economies seek alternatives to dollar-dominated financial channels, according to the report.
