Applicable to overseas institutions and can only be opened in financial institutions in the region. That is, the non-resident free trade account is a kind of FT (Free Trade) account in Shanghai Free Trade Zone. This kind of account can only be opened by overseas companies in Shanghai Free Trade Zone. FTN accounts need to be opened in financial institutions in FTZ. If you have an FTE account, you can open it in all local bank branches that have passed the acceptance of the central banking system.
Benefits of FTN account:
1. Enjoy RMB capital account convertibility.
2. Enjoy the environment of interest rate marketization.
3. You can connect with overseas accounts.
4. The local currency-foreign currency system has solved the problem that offshore account cannot use RMB.
5. Realize that domestic enterprises (both in the region and in China) can have two sets of accounts at the same time, one is a free trade zone account and the other is a domestic ordinary account.
The difference between ftn account and nra account:
FTN is a free trade account launched by Shanghai Pilot Free Trade Zone. NRA is a domestic foreign exchange account opened by domestic banks for overseas institutions.
1.FTN: FTN (Free Trade Non-Resident Account) of overseas institutions, that is, FTN of non-resident free trade account, is a kind of FT account in Shanghai Free Trade Zone, which was established on September 20 13. Among them, FTN accounts in the financial sector were officially launched, such as Shanghai Standard Chartered and Shanghai DBS.
2.NRA: non-resident accounts of overseas institutions, referred to as NRA. In order to promote equal competition between Chinese and foreign banks and standardize the problem of non-resident accounts, the State Administration of Foreign Exchange issued the Notice on Relevant Issues Concerning the Management of Domestic Foreign Exchange Accounts of Overseas Institutions in 2009. Since then, both domestic and foreign banks can open foreign exchange accounts (foreign currency NRA accounts) for overseas institutions.