Citi and Microsoft among first firms in new Shanghai free trade zone
30 September 2013
A new pilot free trade zone (FTZ), which opened yesterday in Shanghai, will “play a crucial role” in the reform and opening-up of China’s business landscape.
Mon, 30 Sep 2013A new pilot free trade zone (FTZ), which opened yesterday in Shanghai, will “play a crucial role” in the reform and opening-up of China’s business landscape.
This is according to an announcement on the city of Shanghai's government website, which lists global banking group Citi and a joint venture between Microsoft and Shanghai-based internet TV firm BesTV as some of the first companies registering in the FTZ.
The FTZ will see improved regulatory and taxation systems, financial deregulation and a reduced system of approval for registering and opening up a business, down from 29 to four days.
Commerce minister Gao Hucheng said at yesterday’s opening ceremony: “Following the trend of global economic developments, the establishment of the zone aims to accelerate the transformation of government function, explore innovation of management mechanism, and expand openness in services and financial sectors.”
A total of 11 financial institutions (Citi, Bank of China, Industrial and Commercial Bank of China and DBS China are the four named by the government) have been given the green light to set up in the zone, with a total of 40 firms licensed to operate in the 29 sq km zone in the Pudong district.
Andrew Au, chief executive officer of Citi China, says: “As a leading foreign bank in China, Citi is committed to fully participating in the development of FTZ and playing an active role in promoting trade liberalisation, RMB [China’s currency] cross-border flows and RMB internationalisation as we build out our business here, leveraging Citi’s global network and expertise.”
The Wall Street Journal says that HSBC and Standard Chartered are “expected to be among the other front runners of global banks testing the new zone”.
An HSBC spokesperson tells recruiter.co.uk that the bank “will look to establish a presence” in the FTZ, while the Wall Street Journal suggests that alongside HSBC, Standard Chartered is “expected to be among the other front runners of global banks testing the new zone”. However, spokespeople at the bank were unavailable to comment.
And today’s City AM suggests that “websites like Facebook and Twitter are expected to face less censorship in the city, as part of a drive to welcome more foreigners”.
Alongside more business opportunities in the Shanghai zone, further reforms may be in store in the longer term, with Jian Danian, deputy director of the FTZ’s managing authorities, commenting: “We are going to build the Shanghai FTZ as a test bed for pushing forward reforms and opening the economy wider.”
This is according to an announcement on the city of Shanghai's government website, which lists global banking group Citi and a joint venture between Microsoft and Shanghai-based internet TV firm BesTV as some of the first companies registering in the FTZ.
The FTZ will see improved regulatory and taxation systems, financial deregulation and a reduced system of approval for registering and opening up a business, down from 29 to four days.
Commerce minister Gao Hucheng said at yesterday’s opening ceremony: “Following the trend of global economic developments, the establishment of the zone aims to accelerate the transformation of government function, explore innovation of management mechanism, and expand openness in services and financial sectors.”
A total of 11 financial institutions (Citi, Bank of China, Industrial and Commercial Bank of China and DBS China are the four named by the government) have been given the green light to set up in the zone, with a total of 40 firms licensed to operate in the 29 sq km zone in the Pudong district.
Andrew Au, chief executive officer of Citi China, says: “As a leading foreign bank in China, Citi is committed to fully participating in the development of FTZ and playing an active role in promoting trade liberalisation, RMB [China’s currency] cross-border flows and RMB internationalisation as we build out our business here, leveraging Citi’s global network and expertise.”
The Wall Street Journal says that HSBC and Standard Chartered are “expected to be among the other front runners of global banks testing the new zone”.
An HSBC spokesperson tells recruiter.co.uk that the bank “will look to establish a presence” in the FTZ, while the Wall Street Journal suggests that alongside HSBC, Standard Chartered is “expected to be among the other front runners of global banks testing the new zone”. However, spokespeople at the bank were unavailable to comment.
And today’s City AM suggests that “websites like Facebook and Twitter are expected to face less censorship in the city, as part of a drive to welcome more foreigners”.
Alongside more business opportunities in the Shanghai zone, further reforms may be in store in the longer term, with Jian Danian, deputy director of the FTZ’s managing authorities, commenting: “We are going to build the Shanghai FTZ as a test bed for pushing forward reforms and opening the economy wider.”
For more on China from Recruiter/recruiter.co.uk:
- ‘HOT 100 lead recruiter SSQ opens offices in China’ (recruiter.co.uk, 11 September 2013)
- ‘Inquiry over JP Morgan hiring offspring of Chinese officials’ (recruiter.co.uk, 21 August 2013)
- ‘Global Spotlight on China’ (Recruiter, August 2013) – see also the digital version of Recruiter magazine.
