Launch of BRICS bank boosts Shanghai's bid to become global financial centre
Second new policy bank backed by China strengthens the city's bid to become global financial centre and will help to internationalise the yuan
Officials from the world's largest emerging nations on Tuesday launched the New Development Bank (NDB) - the second of two new policy banks heavily backed by Beijing that are being pitched as alternatives to institutions such as the World Bank.
The launch of the new bank by the five BRICS nations, which along with China include Brazil, Russia, India, and South Africa, strengthens a bid by Shanghai - where it is headquartered - to become an international financial centre. It also boosted China's attempts to direct more infrastructure investment abroad, analysts said.
The bank was expected to be fully operational by the end of the year or in early 2016, the Shanghai government said in a statement.
Local financial institutions would be encouraged to forge a "wide and close" relationship with the NDB, also known as the BRICS bank, Shanghai mayor Yang Xiong said.
"The launch of the bank will reinforce Shanghai's bid for a global financial centre and accelerate our opening up."
The bank gave Shanghai a chance "to gear up the mainland's move to internationalise the yuan", Orient Securities chief economist Shao Yu said.
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