Shanghai to expand access to overseas funding for companies as part of plan for free port
City’s mayor says more companies operating outside its free-trade zone will be able to use special bank accounts as it awaits endorsement of an expansion plan
Mayor Ying Yong told reporters on Monday that such companies would be allowed to use the so-called FT bank accounts currently available to companies within the 120 square kilometre (46 square mile) free-trade zone.
“Shanghai will expand the scope to allow more businesses to use FT accounts,” he said at a media conference after the close of the annual session of the Shanghai People’s Congress. “Regarding the free-trade port issue, Shanghai will build it under the direction of the central government, which is making overall arrangements.”
He did not elaborate on what kind of businesses outside the zone would be allowed to set up FT accounts.
His remarks came after the state-owned Shanghai Securities News reported that a detailed operating plan for the free-trade port would be unveiled after the close of the National People’s Congress annual session in March.
The free-trade port is an upgraded version of the free-trade zone, and will offer further financial liberalisation as Beijing looks to create international free trading hubs on a par with Singapore and Hong Kong.