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China announces 12 new FTZs
January 23, 2014, 4:47 am

Shanghai Municipality Communist Party Secretary Han Zheng, left, inaugurates the Shanghai Free Trade Zone during a ceremony in Pudong district, Shanghai Sunday, Sept. 29, 2013 [AP]

Shanghai Municipality Communist Party Secretary Han Zheng, left, inaugurates the Shanghai Free Trade Zone during a ceremony in Pudong district, Shanghai Sunday, Sept. 29, 2013 [AP]

After opening the one in Shanghai, China’s Communist Party government has given the nod to 12 free trade zones (FTZs).

The FTZs will not come into effect before the end of the year.

State-owned agency Xinhua quoted sources as saying Chinese provinces Tianjin and Guangdong are in the new list.

The Chinese Cabinet is yet to give a go-ahead to the decision. China’s Central administration will undertake a survey to test the feasibility of the project.

“China sets no limits on FTZ numbers and no timetables on building them, as long as they meet the requirements of an FTZ,” Xinhua quoted a government official.

The move to announce a dozen more FTZs comes as Beijing moves to sustain investor enthusiasm.

Policy initiatives in the Shanghai FTZ 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 programs and to similarly enable Chinese individuals in the zone to buy overseas financial products without going through the current Qualified Domestic Institutional Investor (QDII) program.

More details on the new FTZs are expected to be announced by the Chinese regulators shortly.

TBP and Agencies

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