Shanghai FTZ sets up powerful information backup system
Updated: 2015-10-23 15:40
By Dai Tian(chinadaily.com.cn)
Zhang Xin, deputy director at the Shanghai branch of the People's Bank of China,at a media briefing held by the State Council Information Office, Oct 23. [Wang Zhuangfei/China Daily]
All financial institutions in Shanghai have been integrated into the system, and through the free-trade accounts, companies can not only settle trades and investments in local and foreign currency, but also access trading platforms for transactions such as gold and certificate of deposit, said Zhang Xin, deputy director at the Shanghai branch of the People's Bank of China.
"The account functions will expand further to support innovative cross-border investment and financing services and enable China's financial institutions to better serve our real economy and compete globally," said Zhang to China Daily at a media briefing.
Premier Li Keqiang pledged to promote financial reform and opening up to prop up real economy in his visit to the Shanghai FTZ on Sept 19.
About 35,000 corporate free-trade accounts have been registered in the pilot zone since its founding in September 2013, said Zhang, adding that the early warning information system set up by the central bank will ensure the isolation of risk.
Currently, companies at the Shanghai FTZ are allowed to invest and finance at the offshore market no more than two times of its capital funds, said Zhang. "Once their activities exceed such limit, the system will detect and we will step in."
"The system will facilitate cross-border activities and act as a strong backup for post-stage management," he said.