China opens landmark Shanghai free trade zone
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Beijing (dpa) - China opened its new Shanghai pilot free trade zone Sunday that has been called a test for deepening market-oriented financial reforms for the next decade, state media said.
The project provides more open trade in services, with foreign and private investment permitted in 18 service sectors including finance, shipping, commerce and culture.
It also promises to liberalize foreign currency exchange, which analysts see as a key part of Shanghai's drive to build itself into an international financial centre by 2020.
The official Xinhua news agency said China's four major commercial banks had already applied to regulators to operate inside the zone.
The Shanghai city government said the zone had "raised hopes that China will deepen its economic reforms" as the ruling Communist Party tries to shift the world's second-largest economy away from its long reliance on investments and exports.
The government approved the suspension of several regulations on foreign investment in the Shanghai zone for three years, but it is not expected to formulate detailed plans for several months.
