|People queue up at the China (Shanghai) Pilot Free Trade Zone's service center. Banks within the zone can now conduct renminbi cross-border settlements for transactions involving the current account and direct investment business. Xu Congjun / for China Daily|
Group to take advantage of broad international network, experience
The China (Shanghai) Pilot Free Trade Zone is likely to become an international treasury center and attract an increasing number of multinationals, Standard Chartered Group Chief Executive Officer Peter Sands said in Beijing on Tuesday.
In addition to Hong Kong, Taiwan, Singapore and London, the new FTZ represents the next opportunity to expand renminbi services, Sands said.
"We are very excited that the renminbi is becoming more integrated into the global economy, and the process is extraordinarily rapid, although there are many steps to go through," he said.
Standard Chartered, based in the United Kingdom, is preparing for reforms and changes in China, especially those in relation to the FTZ.
It aims to "play a positive role", taking advantage of the bank's broad international business network and experience, according to Sands.
The People's Bank of China released a document, Guidelines for Financial Support for the China (Shanghai) Pilot Free Trade Zone, on Monday.
The central bank's document gives permission to expand cross-border use of the yuan, lists measures to facilitate currency conversion, cross-border investment and financing activities, and deepens the reform of foreign exchange management.
Chang Jian, a senior Chinese economist at Barclays Capital Plc, said the document means institutions in the FTZ will be able to invest in products on financial exchanges in Shanghai and issue yuan-denominated bonds onshore.
"Foreign parent companies of enterprises in the zone can also issue renminbi bonds in onshore capital markets," which will provide business opportunities to domestic and foreign financial institutions, said Chang.