In order to align with the national measures to temporarily adjust laws and administrative regulations in the China (Shanghai) Pilot Free Trade Zone, maintain the unity of the national legal system, and advance the construction of the Shanghai FTZ, the Standing Committee of the Shanghai Municipal People's Congress plans to make a decision on temporarily adjusting the implementation of relevant provisions of local regulations in the Shanghai FTZ. The Standing Committee of the Shanghai Municipal People's Congress has decided to hold the eighth meeting of the 14th Standing Committee tomorrow to deliberate the relevant draft decision.

　　The Standing Committee of the National People's Congress has authorized the State Council to temporarily adjust, within the Shanghai FTZ, the relevant administrative approval provisions stipulated in the Law on Wholly Foreign-Owned Enterprises, the Law on Sino-Foreign Equity Joint Ventures, and the Law on Sino-Foreign Cooperative Joint Ventures for foreign investment beyond the special administrative measures for market access stipulated by the state.

　　The Shanghai FTZ covers four customs-administered areas directly under customs supervision: the Waigaoqiao Free Trade Zone, the Waigaoqiao Bonded Logistics Park, the Yangshan Bonded Port Area, and the Pudong Airport Comprehensive Bonded Zone. Preparatory work is currently proceeding in an orderly manner.

　　Although the Shanghai FTZ has not yet been officially launched, a battle to open bank branches has already begun among Chinese-funded banks. Reports say that banks establishing branches in the FTZ will not be subject to the rule that "only one branch may be established in the same city," and can directly set up a "branch" rather than a "sub-branch." Currently, eight banks, including ICBC, Agricultural Bank of China, Bank of China, and China Construction Bank, have submitted applications to regulators. Some banks are applying to set up locations in the Shanghai FTZ, while others that already have locations are applying to upgrade them to branches.

　　Industry insiders said that the main direction of financial innovation in the Shanghai FTZ is focused on the offshore finance sector, striving to become a global center for renminbi innovation, trading, pricing, and clearing. Branches in the FTZ will enjoy the same treatment as overseas banks, which means more opportunities for banks.

　　According to reports by Outlook Think Tank and Caiguo Weekly, the FTZ is expected to achieve interest rate liberalization, with controls on both deposit and lending rates to be lifted; however, regarding free convertibility of the renminbi, there are still differences of opinion on whether to fully liberalize it or only liberalize it "under the capital account."

　　In addition to news in the economic and financial fields, there was another report related to telecommunications services in the Shanghai FTZ yesterday. According to Hong Kong media citing sources, the Shanghai FTZ authorities will invite foreign telecom companies to bid for internet service licenses in the zone, allowing foreign telecom companies to compete with China's three major state-owned telecom operators.