A string of policies in foreign exchange administration were recently carried out by authorities in the Pingtan Comprehensive Pilot Zone in Fujian province.

The policies were approved by the State Administration of Foreign Exchange in a bid to benefit enterprises in Pingtan.

Based on the new rules, enterprises will carry out self-disciplinary ratio management (which sets limits on the ratio between assets and liability to avoid financial risks) of their foreign loans including RMB.

For overseas-funded companies, their outstanding external debt can not exceed double their net assets in the previous year, while for domestic-funded firms, the external debts should be below half of their net asset value from the previous year.

The settlement of foreign exchange in foreign debt payments by both domestic and overseas-funded companies in Pingtan complies with current regulations on foreign loan management by overseas-funded enterprises.

Eligible enterprises in Pingtan are being encouraged to issue RMB bonds in Taiwan.

Passengers are allowed to use New Taiwan Dollars to purchase ferry tickets to Taiwan. Taiwan currency from the transaction can be converted to RMB at the Haixia High-Speed Passenger Roll-on/roll-off Ship Company or at designated places in Pingtan.

The new policies will expand financing channels for enterprises in Pingtan, and lower their operational costs as well as exchange rate risks, which will enhance their competitiveness, said insiders.

Allowing the Taiwanese currency for purchasing ferry tickets will make cross-Straits trips more convenient.

In summary, the policies will provide better financial service for investors in Pingtan to boost its development.