Shanghai's Lin-gang Special Area has made significant strides in offshore trade financial services with the launch of a comprehensive reform pilot program, announced as a major financial policy package at this year's Lujiazui Forum in June.

Within the first month of implementation, enterprises have successfully completed offshore trade fund settlements totaling approximately 500 million yuan ($69.64 million) under this new model.

The pilot scheme, pioneered by the Lin-gang Special Area Administration, introduces specialized offshore trade subsidiaries as vehicles for business operations. Participating banks now offer "exemption from document review" settlements, drastically reducing the transaction time from 2-3 working days to mere seconds. This is in alignment with international standards set by mature offshore centers like Hong Kong and Singapore.

Historically, settlement efficiency has been a major bottleneck for China's offshore trade sector. The traditional process required banks to verify the authenticity of contracts, invoices, and bills of lading, as well as confirm the transfer of goods ownership, which often took days.

The new "Lin-gang Model" exempts pre-transaction verification for selected enterprises, enabling instant fund transfers based solely on corporate payment instructions.

This innovation holds strategic importance, helping construct an offshore trade financial ecosystem aligned with international norms and enhancing Shanghai's voice in global trade rule making.

By the end of 2024, offshore trade turnover in Lin-gang reached $24.78 billion, up 87.5 percent year-on-year. The figure in the first quarter of 2025 hit $8.15 billion, up 56.67 percent over the same period last year.

Lin-gang Special Area has attracted over 100 offshore trade enterprises since its inception six years ago, forming a diverse corporate matrix spanning traditional bulk commodities, high-tech semiconductor trade, and global manufacturing layouts.

Looking ahead, Lin-gang aims to further boost offshore trade growth by attracting manufacturing firms with overseas production bases, fostering a model featuring global order-taking, overseas processing, and Lin-gang settlement. This will solidify Lin-gang's role as a pivotal hub for onshore-offshore business integration, helping turn Shanghai into a premier global trade center.