StanChart eyes yuan opportunities in FTZ
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.
Under the new policies, institutions in the Shanghai free trade zone can borrow overseas. Banks in the zone may conduct renminbi cross-border settlements for transactions involving the current account and direct investment business.
The renminbi clearing services will offer more opportunities for Chinese enterprises to expand investment, he said. "More broadly, it will help Chinese companies access all Western markets.