NewThe Qianhai free-trade zone and its plans to be one step ahead of China’s pack on financial links with Hong Kong
Shenzhen’s Qianhai free-trade zone aims to pioneer its own reforms to bolster financial cooperation with Hong Kong, going one step further than its counterparts in the rest of the province.
But analysts were divided over the virtues of the proposals.
Du Peng, head of the Qianhai Management Authority, said on Friday the zone was in talks with the Hong Kong Monetary Authority on new ways to foster cross-border financing, focusing on cross-border yuan flow and cross-border insurance and wealth management products.
The aim was to give mainlanders better access to overseas financial services and products.
Speaking after Guangdong’s annual legislative sessions, Du said about 10 measures would be added to the existing list of central bank-sanctioned financial reforms for Guangdong’s free-trade zones, hopefully by the year’s end.
READ MORE: Commerce minister details scale of China’s new free-trade zones
The reform package, released in December, allows corporations registered in the zones to freely convert up to US$10 million in yuan a year. Other sweeteners include support for banks to develop forex-related derivatives businesses and streamlined procedures for issuing offshore yuan-denominated debt.