Shanghai Free Trade Zone expected to be launched on September 29

BEIJING - Shanghai is expected to launch its trial free trade zone around September 29. The zone will offer relaxed restrictions on the capital account and free convertibility of the currency, as well as liberalised foreign exchange. Regulatory details for the zone are still being finalised, but the plan will likely offer foreign companies additional opportunities in industries such as banking and health insurance, while blocking investment in others.

The zone will contribute to Premier Lie Keqiang’s efforts to shift the economy towards services and consumption from investment and exports, and will also work towards the Government’s goal of turning Shanghai into a global financial centre by 2020. The free trade zone is seen as a testing ground for financial liberalisation nationwide, but it will likely be several years before the planned changes are widespread.