SHANGHAI Dec 2 Chinese regulators published new
details on planned reforms for a free trade zone launched in
Shanghai earlier this year, as Beijing moves to sustain
enthusiasm in the face of resurgent investor scepticism.
The list of reforms published by the People's Bank of China
(PBOC) on Monday was more detailed than previous lists but did
not increase the proposed net scope of reforms in the zone,
which already includes deep changes to the country's exchange
rate regime, cross-border investment flows and interest rates,
alongside wide-ranging reforms to trade in goods and services.
The document said upcoming policy initiatives will include
regulations allowing foreign companies with subsidiaries in the
zone to issue yuan-denominated bonds; to allow foreigners to buy
and sell Chinese equities and bonds directly without going
through current pilot programmes and to similarly enable Chinese
individuals in the zone to buy overseas financial products
without going through the current Qualified Domestic
Institutional Investor (QDII) programme.
The PBOC will create specially tagged bank accounts for use
by companies and investors in the zone to conduct such
activities, and that transactions between these special accounts
and accounts in the rest of the country will be treated as
However, the announcement did not specify any deadline for
Separately, the Ministry of Finance and the Ministry of
Taxation also jointly announced new guidelines for how profits
will be taxed within the zone.
All companies registered in the free trade zone will be
required to pay corporate income tax.
(Reporting by Pete Sweeney; Editing by Kim Coghill)