The rules of the system has free trade allow full convertibility of the Chinese currency and financing abroad in the Free Trade Zone of Shanghai
The central government has developed 51 policies and regulations to support free trade area in Sanghai, which will be operational by mid-year. The rules on the implementation of the free trade system, which will allow full convertibility of the Chinese currency and financing abroad in the Free Trade Zone of Shanghai (ZLC) apply before the end of June, said the deputy director of administrative committee of Shanghai, Dai Haibo.
The move will help Chinese companies, especially those involved in foreign trade, to ensure cheaper financing denominated in yuan overseas, where financial costs have been lower than in mainland China.
Earlier, China's central bank eased restrictions on foreign investment in enabling individuals working in the area for a new account intended for investment abroad.
traslation: Belén Zapata