SWIFT, the global financial messaging service platform, has officially established a wholly foreign owned entity in Beijing last year, representing an important milestone in its China strategy.
The move will lead to an increase in SWIFT's China offerings, while allowing it to play a larger and more active role in supporting the internationalization of the Chinese yuan, according to analysts.
Through this new entity, the Chinese financial community will benefit from the inclusion of local language capabilities in SWIFT's offerings, customized services that meet local regulatory requirements, and the recognition of the renminbi as an international billing currency for SWIFT's offerings, said the organization.
Mu Changchun, deputy director of Payment and Settlement Department at the People's Bank of China, the central bank, said, "the successful establishment of the new entity is a significant step for PBOC to partner with critical financial infrastructures, and also a demonstration of China's strong will in the opening up of our financial markets."
For the past 35 years, SWIFT has been China's financial messaging platform, connecting Chinese financial institutions to the global financial system. It is a natural step and historic milestone for SWIFT to set up its WFOE in China as the country further accelerates its capital markets liberalization.
"SWIFT highly values the unique role of Beijing for its position in Chinese financial regulation system and also its openness, inclusiveness and high efficiency of execution", Alain Raes, CEO of Asia-Pacific and EMEA at SWIFT, said.
Daphne Huang, CEO of SWIFT China, said the new WFOE is opening up a new chapter in SWIFT's history in China. SWIFT will work more closely with financial institutions operating in this market to contribute to the global financial innovation.
SWIFT has been serving Chinese financial institutions since 1980s and by July 2019, around 600 financial institutions, corporations and State-owned enterprises have connected to the SWIFT platform.