No financial reform risks at FTZ: Shanghai Party chief

SHANGHAI - No systematic and regional risks from financial reforms at China's first experimental free trade zone (FTZ) will be allowed, a top Shanghai official said in a recent interview.

Han Zheng, the Communist Party chief of Shanghai, told Xinhua that the financial reforms and innovations at the FTZ should be carried out under the premise of controllable risk.

"We have zero tolerance for systematic and regional risks," Han said.

As the outpost for China's new round of reforms, the Shanghai FTZ, which was launched on September 29, will test full convertibility of China's currency, the Renminbi, its use across national borders and liberalized interest rates as part of the financial reform package.

Han said all financial reforms and innovations should be compatible with the country's economic development level and the international status of the Chinese currency. Meanwhile, the reforms should always serve the real economy to elevate China's competitiveness in the world arena, Han added.

He said the country's top banking, securities and insurance watchdogs have released supporting measures regarding the establishment of the FTZ, but a detailed plan from the central bank, the People's Bank of China, has yet to come.

"The detailed plans on the financial reforms (in the zone) will be worked out by the central government, and the Shanghai government will mainly work with the central government for their implementation," said Dai Haibo, deputy director of the FTZ's administrative committee.

Dai said his committee is working with regulatory and supervising authorities to speed up building a money monitoring system and helping banks establish an enterprise database.