(Yicai Global) April 18 – Shanghai's Lujiazui finance district, located across the Huangpu River on the Bund, plans to achieve capital account convertibility and promote the use of the yuan in cross-border transactions in the next few years. The move is aimed at establishing Lujiazui as Shanghai's open global financial market.
In its 13th 'Five-Year Plan' (2016-2020) released today, the Lujiazui administration authority pledged to push forward the yuan-denominated trading and settlement activities, and actively improve China's pricing power on resource products in the global market by introducing 'Lujiazui prices' and 'Lujiazui standards' with strong global influence.
Being part of Shanghai Free-Trade Zone, also known as China Pilot Free-Trade Zone, Lujiazui is designated by the municipal government as the city's core international financial center. It has a total area of about 30 square kilometers and is now home to nearly 800 leading financial institutions, with four of the world's top-10 asset management firms, Blackrock, Vanguard, Fidelity and J.P. Morgan, have set up offices in the district.
Lujiazui offers many incentives for financial businesses, as well as favorable policies in terms of promoting internationalization of the yuan and capital account deregulation.