China Pledges Intense Progress with FX Reforms in 2014 at Shanghai FTZ

The mayor of China's economic capital, Shanghai, committed to focus on advancing major currency reforms in a recently launched national free trade zone, in a speech he delivered today to address the city's economic growth in 2013 and its target rate for the year of 2014.

In our Q4 2013 Industry Report, Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates examines China's Shanghai Pilot Free Trade Zone, which was launched during the latter part of the year by the Chinese government. Our report makes the case that China plans to turn Shanghai into a global financial center and the premier business hub in Asia. Additionally, the analysis of insiders is presented regarding the move's importance to the FX industry. For a preview of the report click here.

Mayor Yang Xiong reported today to the Shanghai municipal congress that the city's GDP expanded by an estimated 7.7% in 2013, with the finance industry's double-digit growth rate leading the way. To sustain long-term economic growth, the mayor pledged to make “all-out efforts” to build up the free trade zone and seek "substantive progress with pilot reforms.”

Among the financial reforms mentioned in the speech, included: full convertibility of the Chinese yuan currency under the capital account, cross-border Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term of the yuan and interest rate liberalization. Mayor Yang also said the government would seek to launch crude oil futures this year and revise, in a timely way, the "negative list" of industries that are still barred from operating in the FTZ.