Shanghai Free w88 Zone delineates financial reforms, experts say to promote domestic market integration

ComeSource:中CountryNewWenwang 2013-9-29

China News Service (Financial Channel Zeng Huisheng) After months of preparation, China(Shanghai)The free w88 pilot zone finally came to the market today. Recently, the State Council issued the overall plan for the Shanghai Free w88 Zone, which stipulates a number of reform measures such as the transformation of government functions, financial systems, w88 services, foreign investment and taxation policies. Of course, the overall plan is subject to detailed implementation by Shanghai. According to expert analysis, the free w88 zone aims to promote domestic reform through opening up and create an upgraded version of the Chinese economy; it implements negative list management and expands the opening of service fields, giving foreign investment more space in the free w88 zone; financial reform helps domestic market integration, but it is necessary to prevent capital transfer and arbitrage risks; and tax incentives are not the focus of the free w88 zone's reform, and the intensity is lower than expected.

Opening up promotes reform and creates an upgraded version of China’s economy

The plan is clear, insisting on pioneering and piloting in the free w88 zone, promoting reform and development through opening up, taking the lead in establishing a cross-border investment and w88 rules system that meets the requirements of internationalization and legalization, making the pilot zone an important carrier for my country to further integrate into economic globalization, and create an upgraded version of the Chinese economy.

“The establishment of the Shanghai Free w88 Zone is no less significant than the establishment of the special zone in Shenzhen by China.”Zhuang Rui, Deputy Dean of the Institute of International Economics, w88 casinoYesChina News ServiceFinancial Channel Analysis, Passed30After many years of reform and opening up, China's reform has entered a deep-water zone and a critical stage. It seeks institutional innovation through experimental zones, tests some large-scale opening up, and pushes China's reform and opening up one step forward. She believes that the focus of the Shanghai Free w88 Zone is to promote reform through opening up, promote domestic reforms, and secondly further open the market.

“The greatest value and significance of Shanghai Free w88 Zone is‘Shanghai System’and‘Shanghai mechanism’”Ding Zhijie, Dean of the w88 casino of Finance, w88 casinoAcceptChina News ServiceIn an interview with the Financial Channel, he said that he values the role of the Shanghai Free w88 Zone in national reform and domestic economic transformation. Many institutional innovations in the free w88 zone will surely gradually radiate and be rolled out across the country within two to three years.

He said,“We chose Shanghai, the leader in thinking in the Yangtze River Delta, to carry out such a big move as the free w88 zone, which shows our determination to reform and open up. Moreover, these reforms and innovations in the free w88 zone are what China must do, and they are also the reforms that will trigger the whole body.”

Expanding the service sector and opening up more space for foreign investment

Ding ZhijieYesChina News ServiceThe financial channel stated that this is a major breakthrough for China in terms of market access. By introducing new competitors, market competition will be more complete, prices will be determined by the market, and the efficiency of the industry will be improved. However, because the banking industry has the characteristics of high liabilities and large spillover effects, certain conditions are required.

The latest news is that currently ICBC, Bank of China, Agricultural Bank of China, China Construction Bank, Bank of Communications, Shanghai Pudong Development Bank, China Merchants Bank and Bank of Shanghai, etc.8Chinese banks have received approval from the China Banking Regulatory Commission to set up branches in the free w88 zone. Foreign banks such as Bank of East Asia, HSBC, and Standard Chartered Bank also plan to set up branches in the Shanghai Free w88 Zone.

The telecommunications industry, which has been questioned before, is also open to foreign investment. The plan stipulates that on the premise of ensuring network information security, foreign-funded enterprises are allowed to operate certain forms of value-added telecommunications services, but if they involve breaking administrative regulations, they must be approved by the State Council. In addition to the financial and telecommunications fields, the plan also provides for expanding opening up to foreign investment in shipping services, professional services, cultural services and social services.

Financial reform is being tried first and capital transfer and arbitrage risks need to be prevented

“The big idea of reforming and innovating the financial system in the free w88 zone is right, and the advancement is also very vigorous.”Ding ZhijieAnalysis, RMB capital account convertibility and cross-border use are the most important things in China's current financial opening up; interest rate liberalization means that the domestic market needs to be integrated in the future. Since there are still serious financial segmentations and obstacles in the country, it is difficult to break the existing interest pattern through domestic reforms alone. Only through opening up to the outside world and domestic financial reform can we simultaneously promote financial reform and deepening.

Ding Zhijiebelieves that the financial reform of the free w88 zone will contribute to the construction of Shanghai as an international financial center and will also make Shanghai a global center for RMB.

However, some scholars say that financial reforms in free w88 zones are more cautious. Guan Qingyou, deputy director of the Minsheng Securities Research Institute, said that capital flows and local currency free convertibility, which the market had previously expected, have been steadily advanced and cannot be relaxed all at once.

Zhuang RuiAnalysis shows that financial reform within the free w88 zone may bring risks of capital transfer and corporate arbitrage. Ding Zhijie also said that there are risks of short-term cross-border capital flows and intra-regional and extra-regional profits, but they can be prevented by forming domestic market integration and improving market efficiency.

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