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MNI POLICY: China To Boost FTZ Access For Foreign Finc'l Firms

MNI (London)
--Look To Offer Greater, More Equal FTZ Access In Financial Sector
--China Aims At Great Use of Yuan In Int'l Settlements
     LONDON (MNI) - China's authorities will further open up free-trade zones
and level the playing field for foreign investors, as they also look to expand
business areas where overseas financial institutions can invest, officials said
Friday.
     The People's Bank of China will implement new policies aimed at opening up
financial markets in free-trade zones, Xu Zhong, director of the PBOC research
bureau, told a press conference announcing government measures to develop
China's 12 free-trade zones.
     The main points from the press conference were:
     --China will look to facilitate greater use of the yuan in pricing and
settlement of commodities with other countries, a document provided at the press
conference noted.
     --The PBOC will remove restrictions on what size stake foreign investors
can hold in banks in free-trade areas, while further removing restrictions on
what business categories foreign banks' can pursue in free-trade zones, Xu said.
     --The central bank will also ease market restrictions and equalize entry
into financial markets for both domestic and foreign investors, he said. Xu
added the PBOC will explore new methods to copy and expand such experience to
other regions in the country.
     --Officials from the PBOC, Ministry of Commerce and General Administration
of Customs announced they will delegate greater management and supervision
rights to the local level, prioritize land allocation for developing free-trade
zones, and allow foreign airlines to operate freight flights from Zhengzhou and
Xian to other countries. They also stressed the importance of controlling
financial risks during this process.
     --China is supporting a pilot program allowing companies to import cars
directly and sell domestically, instead of relying on official dealerships, a
move seen diversifying supply lines and offering cheaper options for car buyers.
     --The government will allow; free-trade zones to establish trading
platforms for energy, industrial raw materials and agricultural commodities; the
conduct cross-border renminbi businesses; financial institutions in free-trade
zones to offer yuan-denominated loans to foreign institutions and Chinese
companies' overseas projects.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,MI$$$$,MT$$$$,MGQ$$$]
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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