More clarity needed for special accounts in FTZ
Print Edition
MORE detailed rules to govern the operation of special financial accounts in Shanghai’s free trade zone need to be drawn up because regulators pledge to boost the yuan in cross-border trade as a financial reform priority in the zone.
Zhu Xiaoming, president of the China Europe International Business School, said financial practitioners in the zone have expressed reservations over details governing the accounts of free trade units, according to the school’s survey of financial institutions and companies operating there.
The People’s Bank of China last month released rules for banks, brokerages and insurers to set up free trade unit accounts, used to facilitate trade and foreign direct investment, for companies and individuals in the zone.
“But the rules did not specify what operations can be carried out with the free trade accounts,” Zhu said at a forum in Shanghai yesterday.
Other concerns include complicated approval procedures for foreign schools and hospitals as well as setting up of offshore corporations and Asia-Pacific headquarters, Zhu said.
Dai Haibo, deputy director of the FTZ management committee, assured the forum the zone is working to address their concerns.
He also said the zone has prioritized the use of the yuan in cross-border trade settlement.
“We aim to build Shanghai as a pricing center for yuan products and a clearance center,” Dai said. “Institutions registered within and outside Shanghai can conduct cross-border yuan payment services in the zone.”
He also said JD.com, Tencent and Alibaba are applying or have got approval to conduct online cross-border yuan settlement services in the zone.
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