Highlights – Key points from Shanghai's global yuan hub plan

SHANGHAI (Reuters) – China’s economic planning agency unveiled broad plans to make Shanghai the global trading centre for yuan trading, clearing and pricing by 2015.
The following is a list of key points from the plan.
- Form a multi-layer financial market system with joint participation by domestic and foreign investors, and relatively strong functions in trading, pricing and information delivery.
- Gradually form a center for yuan cross-border investment and financing, a center for setting benchmark pricing for yuan products, a center for pricing commodities as well as a center for financial information.
- Gradually form centres for yuan product innovation, yuan asset management, and shipping and financial services.
- Form a modern financial infrastructure, and a clearing center for yuan cross-border settlement and payment.
- Gradually create an international financial talent pool.
- Develop a regulatory system in financial taxation, accounting, credit and supervision to support the operation of an international financial center.
- Further strengthen the blue-chip market, attract IPOs of mature, quality companies and widen listing resources; promote the Shanghai stock exchange to become a first-class bourse in the Asia-Pacific (KSE: 002790.KS – news) region, and with relatively strong international impact.
- Broaden and deepen the yuan forex market. Promote yuan trading with currencies in emerging markets.
- Explore the feasibility of establishing an insurance exchange.
- Gradually build Shanghai into a national center for loan transference and transactions.
- Support listings of cross-border ETFs and ETF products based on international indexes and bonds.
- Launch a pilot scheme for REITs, mortgage-backed securities, and auto-loan-backed securities.
- Study, explore and, when the time is right, roll out financial derivative products based on currency rates, interest rates, stocks and bonds as well as gold ETFs.
- Support overseas listings of qualified Shanghai-based financial institutions.
- Allow more foreign institutions to issue yuan bonds in China.
- Support the expansion of QFII quotas and investments.
- Explore reforms to allow foreign investors to invest in China’s futures market and financial derivative markets.
- Gradually expand the number of the investment options for foreign financial institutions participating in the forex market.
- Explore ways to allow foreign individual investors to invest in the domestic financial markets.
(Compiled by Samuel Shen and Kazunori Takada)
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