(Yicai Global) April 11 -- China aims to set up a new free trade zone for the country's eastern Yangtze River Delta area, home to the economic hub of Shanghai.
The Shanghai Development and Reform Commission held a press conference yesterday and its deputy director Zhu Min confirmed that a new FTZ will be set up without specifying an exact location. Media outlets speculated that the zone could be set up in Jiangsu province.
The share prices of various FTZ-related companies, including Suzhou New District Hi-Tech Industrial [SHA:600736] and Wanlin Modern Logistics [SHA:603117], hit the maximum allowed daily increase on China's stock markets following the news.
Located in eastern China, the Yangtze River Delta is an area with a relatively developed economy. Pilot FTZs have been set up in Shanghai, Zhejiang and Anhui, while Jiangsu is the only province without one in the region.
The FTZ will most likely be located in a place such as Suzhou Industrial Park, state-backed financial outlet 21st Century Business Herald reported.
The exact location remains a national-level matter and no further information is available for now, SIP told Yicai Global.
Jiangsu province is a likely choice for the zone as the state council, the provincial party committee and the provincial government are all in support of setting up an FTZ in the capital Nanjing, Zhang Jinghua, a Nanjing official, disclosed in a speech on Jan. 5.
Officials from an FTZ in neighboring Zhejiang told Yicai Global that there has been an abundance of rumors recently. For Zhejiang, it is more likely that existing FTZs are expanded as opposed to the construction of a brand new one, he added.
Zhejiang's Ningbo has been planning to expand its existing FTZ for some time but nothing is set in stone, a source from the zone told Yicai Global.
Editor: William Clegg