The Shanghai pilot currency free trade zone officially launched on September 29th, granting 25 Chinese and overseas companies licenses to register in the free trade zone on its first day. The state council issued a list of 18 service sub-sectors in 6 broader sectors that should enjoy a faster pace of deregulation in the future, and will serve as a policy framework for the free trade zone. The initial list for faster deregulation sub-sectors include banking, healthcare insurance, financing and leasing, overseas shipping, shipping management company, telecom value-added services, games sales and services, legal services, credit information agency, travel agency, recruitment agency, investment management, engineering design, construction services, entertainment agency, entertainment facilities, education training, professional skills training, and medical services.
Since its first opening, companies have been flocking to open an office in the free trade zone. Many believe the slots for companies will be limited and an investment in establishing a company in the free trade zone would be a good investment for the future.
In addition to companies, all the major banks have established offices in the free trade zone to handle the predicted increase of currency settlements in the zone (due to the fact that currency exchange will be unregulated in the zone). The government has also been encouraging private banking entities to establish locations in the zone.
