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The authorities in Shanghai presented a series of
reform recommendations on Tuesday, to further open up the city's highly
successful China (Shanghai) Pilot Free Trade Zone.
The new measures were in response to 40 general
guidelines announced on October 30 by China's top leadership, to strengthen
financial reforms and piloted programs at the zone.
Tu Guangshao, Shanghai's deputy mayor, told a news
conference that the latest plans include the further expansion of the zone's
free trade account to allow more organizations to take part in overseas trade
and investment activities, especially with countries that China has signed new
free trade agreements.
Tu urged banks, securities firms and insurance
companies, especially, to make better use of the free trade account, and to
come up with more innovative financial services to attract international
business.
Zhang Xin, deputy director at the Shanghai branch
of the People's Bank of China, also pledged to provide sufficient financial
support for ambitious outbound Chinese domestic companies.
Officially launched in June 2014, the scope of
Shanghai's free trade account has been gradually expanded.
In February, for instance, companies in the zone
were told they may now borrow from overseas without prior consent from the
authorities, and that they were no longer limited to borrowing just Chinese
yuan. The scale of the financing was also doubled to up to twice the company's
capital.
Huang Xiaoguang, chief executive officer of ANZ
Bank China, which was officially authorized to provide free trade account
services in late November, said it has been able to lower financing costs for
companies, calling the zone was "a milestone of deepened financial reform,
further financial innovation, and controlled risk in China".
By the end of November, 40 financial institutions
had been connected into the free trade account monitoring and management
information system.
Nearly 40,000 free trade accounts had been opened,
with annual income totaling nearly 1.83 trillion yuan ($282 billion).
Zhang Yuepeng, the president of industrial product
provider Dover Asia Pacific Co Ltd, which has its regional headquarters in
Shanghai FTZ, said he expects more financial reforms to follow.
He said investors had already benefitted,
particularly, from being able to transfer funds between their domestic and
overseas entities via two-way cross-border RMB cash pooling, which allows
multinationals to more conveniently allocate capital between group companies.
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