Update: China to Launch Shanghai Free Trade Zone on September 29th

September 16, 2013 Posted by China Briefing Reading Time: 2 minutes

Sept. 16 – The Shanghai Free Trade Zone will be officially launched on September 29th, according to Wang Xinkui, Director of the Counselor’s Office of the Shanghai Government.

Wang said the free trade zone will further improve the level of opening-up to promote domestic reforms. Moreover, with the view to improve and optimize the business environment, the zone will test the reform of the investment administrative system in accordance with international standards.

Wang also said that the free trade zone will ease some restrictions for foreign banks in terms of capitals, business scope and establishment of branches.

“Foreign banks are developing under a more stringent supervision environment and will be an important force to the development of the free trade zone,” said Wang.

HSBC, Standard Chartered and the Bank of East Asia will be the first three foreign banks permitted to establish branches in the zone.

With regards to the opening-up of the service industry, Wang said the scope of items that have already been liberalized under the opening-up list of WTO financial services may be further expanded.

However, Wang said the reform will be rolled out in a prudent way, and details of the reform will not be the same as most people expected. The free trade zone will pilot with certain products first, which involves the opening-up of capital accounts and lifting restrictions on interest rates and foreign exchange quotas.

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