REPEAT: MNI: China To Boost FTZ Access For Foreign Fincl Firms

Repeats Story Initially Transmitted at 04:52 GMT Nov 23/23:52 EST Nov 22

--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