GUANGDONG
The free trade zone in south China's Guangdong has been leveraging its proximity to Hong Kong and Macao to encourage more cross-border financial transactions.
A total of 13 securities firms and asset managers from Hong Kong have been allowed to invest up to 18.66 billion U.S. dollars combined in China's domestic capital markets.
Banks in the free trade zone offer more products for companies looking for merger and acquisition opportunities overseas to hedge against currency exchange risks.
The zone extends cross-border cash pooling services to smaller firms to help corporate treasuries manage cash flow both in and out of China more efficiently.
The free trade zone is also expected to produce two joint venture securities firms with a full suite of licenses and majority stakes held by offshore entities of HSBC and Bank of East Asia
Tupperware moved its R&D center for the Asia Pacific from Japan to the Nansha District of the Guangdong free trade zone.
The zone also houses many start-ups founded by entrepreneurs from Hong Kong and Macao.
FUJIAN
The free trade zone in Fujian has been piloting measures to ease economic exchanges with Taiwan.
The Fujian zone has granted speedy customs clearance for 120 Taiwanese products. This has made it possible for fresh fruit picked in the morning in Taiwan to hit the market in Fujian in the afternoon.
Streamlined measures for clearing Taiwanese products for the Chinese mainland have been approved by the General Administration of Customs for use in the other three zones.
In addition to eliminating redundant approvals, authorities in the Fujian zone have also set a time limit for processing applications. Applications will be approved by default if not processed within the limit and authorities will be held accountable for any repercussions. The rule has been copied across the country to improve administrative efficiency.
SHANGHAI
Multinational corporations are increasingly using the Shanghai zone to introduce new services to consumers in China.
Apple and Uber have both registered companies in the Shanghai free trade zone as a launchpad for their new mobile payment and ride-hailing services in China.
Shanghai also launched a yuan-denominated gold benchmark this week to offer global investors an alternative to the London and New York gold fixing.
International investors in the zone can participate in spot trading of commodities ranging from iron ore and non-ferrous metals to cotton, denominated in Chinese currency and free of tariffs and value-added taxes.
Zone authorities are drafting regulations to allow Chinese households to invest in offshore capital markets. The country currently only allows domestic financial institutions to make offshore investments on a quota basis.
