China has unveiled new measures to accelerate Shanghai’s development as a global financial centre and promote wider international use of the yuan, the South China Morning Post reported on Wednesday.
Speaking at the annual Lujiazui Forum in Shanghai, People’s Bank of China Governor Pan Gongsheng said authorities would launch a pilot programme for offshore-yuan foreign-exchange trading in the city.
The plan is aimed at supporting the “two-way opening” of China’s financial markets and helping Shanghai become a global centre for yuan asset allocation and risk management, according to the report.
Pan said the central bank would also establish repurchase facilities for overseas central banks and monetary authorities, allowing them to use high-grade assets such as Chinese government bonds in repurchase agreements.
The move is designed to support yuan liquidity management and encourage foreign institutions to hold and trade yuan-denominated assets, according to the report.
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Under the plan, six Chinese lenders will be authorised to conduct offshore-yuan foreign-exchange trading in the Shanghai Free Trade Zone through the China Foreign Exchange Trade System.
