(Yicai Global) June 14 -- The People's Bank of China will take effective measures to keep supporting the opening of Shanghai's financial sector with trials in yuan cross-border business and reform of foreign exchange management, the central bank's Governor Yi Gang said today at the Lujiazui Forum 2018 that convened today in Shanghai.
The two-day event, jointly hosted by the Shanghai government, PBOC, China Banking & Insurance Regulatory Commission and China Securities Regulatory Commission, will discuss ‘building Shanghai into an international financial center in the new era.’
While hewing to market principles in promoting yuan internationalization, PBOC supports Shanghai's innovative trial of products in the currency’s cross-border business. It also expects the eastern megacity to provide investment and financing support for the construction of the Belt and Road Initiative, Yi said.
PBOC will steadily promote capital account convertibility, support Shanghai's reform of foreign exchange management, and enlarge the function of free trade accounts in the city’s Free Trade Pilot Zone, Yi pledged.
"As an international financial center, Shanghai has played a vital role in China's stock, bond and currency markets," said Yi, who is directing further improvement of its financial markets and services.
The port city has notable talent and geographical advantages in third-party and bank card payments, rating agencies and other areas, and this will attract more foreign-funded institutions to expand their operations into the city, he stated.
"When considering the future setup of their global business, many foreign banks, insurance companies and investment banking institutions will pinpoint Shanghai. I believe Shanghai will soon become a beacon for China and the world in construction of financial institutions," Yi said.
Shanghai's financiers and enterprises have been at the forefront of finance research and innovation, he noted, adding that the city should further strengthen its future development and innovation.
With over 400 participants, including regulators, scholars and financial professionals, the Lujiazui Forum seeks to discover how to further identify and tap the city's potential. Lujiazui is Shanghai’s hallmark riverfront business district.