China (Shanghai) Pilot Free Trade Zone: Review & Outlook
Business Regulation and Tax Newsflash
Issue 11 - 29 November 2013
The senior officials of the Shanghai government held a press conference on 28 November 2013 to provide a brief review of the operation of the China (Shanghai) Pilot Free Trade Zone ("Pilot FTZ") during the last two months since its official launch, as well as an outlook of the possible reform measures in the future.
Factsheet (as of 22 November 2013)
Newly established enterprises in the Pilot FTZ
|Total registered capital|
|– foreign-invested||USD 560M|
|– domestic-invested||CNY 34.7B|
|Industry distribution (%)|
|Establishment applications in early process
(i.e. name-checking stage)
Newly established financial institutions in the Pilot FTZ
|– Banking (foreign)||12|
|– Banking (domestic)||9|
|– Securities and futures||5|
|– Finance leasing||9|
|– Trading platform||2|
|– Payment service||1|
|– Financial related service (e.g. investment companies, asset management, etc.)||285|
Possible reforms in next steps
Financial reform: The highly anticipated financial reform measures, which were formulated by the People's Bank of China, will be announced and implemented after the completion of relevant preparatory work, in particular, the program design and testing for risk monitoring and control purposes.
Opening-up of service sectors: Among 23 measures to further open up service sectors to foreign investors, as set out in the State Council's Framework Plan for the Pilot FTZ, 12 measures have been implemented while remaining 11 measures are to be launched after the implementation rules are ready or the relevant regulatory obstacles are removed.
- 20 more State Council regulations or circulars will be suspended for three years in the Pilot FTZ to facilitate foreign investment and further relax access to certain industries (e.g. manufacturing and selling of gaming consoles, value-added tele-communication services)
- More supporting opinions from departments such as the People's Bank of China, the Ministry of Industry and Information Technology will be released in the near future.
- The Shanghai government is in the process of collecting comments from various parties (e.g. industry associations) to improve the existing "Negative List (2013)", and produce a 2014 version.
Please follow the link for the full transcript of the press conference in Chinese. You may also access the relevant information and regulations about the Pilot FTZ via Deloitte's dedicated portal page.