The Shanghai United Assets and Equity Exchange, or SUAEE, became the sole entity in China authorized to conduct domestic settlements for cross-border intangible asset transactions, according to an announcement made on Jan 10.

The approval, granted by the Shanghai branch of the State Foreign Exchange Administration, or SAFE, allows the SUAEE to facilitate foreign exchange settlements between domestic and overseas parties involved in cross-border transactions of tangible and intangible assets.

This includes foreign exchange receipts and payments, foreign exchange settlements and sales, as well as domestic foreign exchange transfers related to these transactions.

The authorization is expected to streamline cross-border transactions of intangible assets like patents, trademarks and copyrights, to address a growing need among businesses.

Market analysts also believe that this move will enable Shanghai to pioneer further innovations in facilitating cross-border settlements.

Prior to this, the SUAEE obtained the qualification for domestic settlement of cross-border equity transactions and has since facilitated nearly 500 such transactions with a total value exceeding 100 billion yuan ($13.64 billion).

With these newly acquired qualifications, SUAEE is the first property rights trading institution nationwide to possess settlement capabilities for three major types of cross-border transactions, further enhancing its international resource allocation function.

A spokesperson from SUAEE said that this enhanced qualification would support Shanghai's efforts to consolidate its position as a global resource allocator, a hub for scientific and technological innovation, a leader in high-end industries and a gateway to international exchanges and cooperation, as embodied in the city's "four major functions" strategy.

It will facilitate State-owned enterprises in revitalizing existing assets and in optimizing overseas asset allocations, while also aiding technology-based enterprises in attracting investment and talent to cultivate new drivers of economic growth, the spokesperson added.

Source: Jiefang Daily