A file photo shows a pedestrian walks past the headquarters building of the People's Bank of China in Beijing, capital of China. Photo: Xinhua

Overseas financial infrastructure that provides domestic institutions or individuals with cross-border supply services would require access granted by financial management departments under the State Council, China's cabinet, according to new draft rules released on Wednesday.

The draft rules are intended to strengthen financial infrastructure coordination and oversight, as well as building and planning, so as to ensure effective operation of the financial system and push for the creation of a modern central banking system, the People's Bank of China (PBC), the country's central bank, said in a statement on its website.

The country has over the years gradually built a financial infrastructure system to support its monetary, securities, fund, futures, foreign exchange and other financial markets, read the statement.

Nonetheless, international complexities, the robust development of fintech and rising external cybersecurity challenges have shone a spotlight on the need for legislation and coordinated supervision, the PBC noted.

The draft rules stipulate that overseas financial infrastructure legally allowed to offer cross-border supply services to domestic units and individuals must seek access from the cabinet's financial regulatory bodies.

These suppliers would have launched financial infrastructure services for more than three years and fall under comparable and comprehensive oversight on their home turf. They must also show they have had no major risk accidents or been penalized by any regulatory institutions.

Foreign investment that has an impact or might affect China's national security will have to go through foreign investment security reviews in accordance with the law, the draft rules said.

The PBC is seeking public comment on the draft rules through January 14.

Global Times