Update | Reforms in Shanghai trade zone to start in 3 months
City's PBOC chief talks of bold steps that would be extended to other regions if trial succeeds
The mainland's central bank is expected to formally launch financial liberalisations in the new Shanghai free-trade zone in three months, with the hope of soon extending the reforms to other parts of the country if the trial run proves successful.
Zhang Xin, chief of the People's Bank of China's Shanghai branch, said bold steps had to be taken soon to implement the guidelines governing the financial sector in the zone.
"Those things that we are sure of must be implemented as soon as possible," he said in a statement published yesterday, adding that it would take about a year before the liberalisations could be copied and extended in other regions. It is the first clear-cut timeframe for liberalisations inside the much-hyped zone to be unveiled by a mainland financial regulator.
On Monday, the central bank announced detailed guidelines aimed at bolstering the development of the 29-square-kilometre free-trade zone, launched two months ago as a test bed for Premier Li Keqiang's economic reforms.
Zhang's statement reflected Beijing's determination to make the zone, the first of its kind on the mainland, a success amid mounting doubts about its prospects.
Foreign investors have responded in a lukewarm manner to plans to develop what has been dubbed a "mini-Hong Kong", since no concrete policies have been introduced since late September that could effectively aid free cross-border commodity and capital flows.