Financial Impact from the Shanghai FTZ

Abstract

The Chinese government launched the China (Shanghai) Pilot Free Trade Zone on 1 October 2013, thus beginning a test over the next three years of opening up the services sector, including financial services, to foreign companies. The financial services tests will include removing the ban on offshore services in the banking sector and easing regulations on cross-border investments in securities and futures in the securities sector. Both Chinese and foreign financial institutions have already started operating in the Shanghai FTZ, and China's new government appears to view this as a prolonged effort.

Keywords: Shanghai, Free Trade Zone

JEL Classification: F31, G15