Shanghai FTZ makes great progress in market opening, reform deepening: expert

Open investment sectors

The reform of investment management system and expansion of service industry openness would be accelerated.

Shen said the reform of investment management system contains pre-establishment national treatment, negative list mechanism and record-filing system.

"The initial version of the (negative) list contained 190 items. In late June of 2014, the government trimmed 51 items from the list," he mentioned.

"Administrative measures for outbound investment were also streamlined. Substantive approval was replaced by filing requirement. Companies in Shanghai FTZ no longer need to get approvals from National Development and Reform Commission," or China's top economic planner, he added.

In terms of service industry openness, Shanghai FTZ opened up six major areas involving 23 specific industries: financial, shipping, commercial, professional, cultural and social services.

Trade development approach

Trade function and trade efficiency would be improved during the transformation of trade development approach, Shen noted.

Multinational companies are encouraged to set up Asia-Pacific regional headquarters and operation centers. Besides, international commodity trading and resource configuration platform are explored.

"In the end of September 2014, first 20 Asia-Pacific group headquarters were set up. Cross-border e-commerce enterprise named Kuajingtong owned 29 online merchants," he said.

Besides, average custom clearance time of imported goods has been shortened from two to three days to just half a working day. In terms of exported goods, custom clearance time decreased 36.8 percent comparing outside the Shanghai FTZ, Shen said.

Deepening innovation

The financial service functions will be greatly strengthened. Qualified foreign banks and private capital groups are allowed to set up their wholly-owned bank subsidiaries and joint venture banks in Shanghai FTZ. Platforms of international transactions are permitted to establish. Oversea companies are allowed to engage in commodity futures trading.

Shen illustrated some new institutions. "Shanghai United Assets and Equity Exchange has established trade service platform in Shanghai FTZ. China Financial Futures Exchange, China Foreign Exchange Trading Center, Shanghai equity trading center and Shanghai Clearing House rolled out trading venues in Shanghai FTZ," he said.