Premier Li's tour gives boost to Shanghai trade zone

Premier Li Keqiang is set to make the most of the launch of an international gold trading platform today as he beats the drum for the further development of the Shanghai free-trade zone, which has failed to live up to expectations in its first year.

His inspection tour of the 28.78 sqkm zone in Shanghai's Pudong district, designed to be a testing ground for further drastic economic reforms on the mainland, is being seen as sending a loud message to investors: Li will stand firm in bolstering the development of the zone, despite increasing scepticism about the much-hyped project. The premier was a key supporter of the zone's establishment last year.

The Shanghai Gold Exchange said in a text message to reporters yesterday that Li would make remarks on the launch of the international trading board during his inspection of the zone today. That is an indication that the authorities see the trading debut of the precious metal, with the participation of foreign players, as marking a milestone in the zone's development.

Spot gold trading in the zone will be the first concrete liberalisation by the mainland's financial authorities since the inauguration of the zone on September 29 last year.

The Shanghai Gold Exchange, under the oversight of the central bank, will launch the platform 11 days ahead of schedule, coinciding with the premier's visit.

The zone has been dogged by criticism for the past year, with investors and analysts venting their disappointment over its slow progresses and rigid bureaucracy.