Shanghai to build global financial center with yuan internationalization

16:34, December 03, 2010      

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Shanghai will take full advantage of the enhancement of yuan's international status and make greater breakthroughs in developing itself into a global financial center over the next five years. The city's status as an international center for the pricing and settlement of yuan assets is also expected to be basically established by 2015, according to Shanghai's 12th Five-Year Plan released on Dec. 2.

The five-year plan said that based on the internationalization of the yuan, Shanghai will accelerate enhancing the functions and internationalization levels of major capital markets, expand the range of financial products, build a sound capital market system and actively and steadily make its financial markets more open to the outside world.

Xiao Lin, deputy director of the Shanghai Municipal Development and Reform Commission, suggested that Shanghai should build international yuan centers, including yuan settlement centers, yuan product innovation centers and yuan product pricing centers in order to promote the internationalization of the yuan.

Pan Yingli, a professor at Shanghai Jiao Tong University, said that multinational corporations with operations in China, international financial institutions and governments in emerging markets should be encouraged to issue yuan-denominated bonds in Shanghai.

"It should be through outbound investments rather than external deficits to make a currency enter the international community" Pan said. She suggested, "Countries with rich resources can come to China to issue yuan-dominated government debts and use the funds to shop Chinese goods."

In terms of the development of financial institutions, content excluded in the 11th Five-Year Plan, including the active expansion of financial intermediary services and the construction of soft environment, were also included in Shanghai's 12th Five-Year Plan.

Zhou Zhenhua, Director of the Development Research Center of Shanghai Municipal People's Government, pointed out that Shanghai has particularly stressed market mechanisms and developing new businesses in the past, but now it will pay more attention to introducing organizations and institutions.

Although the corresponding systems, mechanisms and environment in Shanghai are not appropriate for the introduction of these organizations and institutions, it is more necessary for Shanghai to introduce these organizations and institutions and create a better development environment for them.

By People's Daily Online


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