On behalf of Dr. Jianguang Shen:
PBoC boosts the Shanghai FTZ
On Monday, the PBoC released a document laying out guidelines for the Shanghai Free Trade Zone (FTZ). The document highlights four financial missions for the FTZ: cross-border renminbi use, capital-account convertibility, interest-rate liberalisation, and exchange-rate management reform.
Despite lacking detailed instructions, we believe the document confirms that the pace of reform has accelerated following the Third Plenary Session. In particular, the financial sector is ahead of the general timeline. The document promotes renminbi convertibility, which we believe can be attained by 2015.
Mizuho Securities Asia Limited
Categories: Economic policy