left corner left corner
China Daily Website

HK-Shenzhen finanical zone 'permissible'

Updated: 2013-01-28 10:59
( China Daily)

HK-Shenzhen finanical zone 'permissible'

Cross-border yuan loans from Hong Kong to Shenzhen's Qianhai district, a 15-square-kilometer financial pilot zone, are now permissible, according to a new rule unveiled on Jan 24 by the People's Bank of China in Shenzhen .

Although the permission is subject to certain criteria such as allowing the use of loans by Shenzhen from Hong Kong only for Qianhai's development, private equity fund managers view this development as offering various opportunities.

China Merchant Bank and China Construction Bank will likely be among the first batch of participants in the Qianhai cross-border yuan loan business.

Hainabaichuan: The policy the central government has awarded Qianhai is unprecedented. Qianhai district should seize the opportunity to develop its financial services professionally.

Spider: This is an important step for the internalization of the yuan.

Liuyinan: the previous cross-border yuan loan was short-term. This time the central government is allowing overseas banks to offer medium- and long-term loans. It will be an important step toward establishing a mechanism for the backflow of the yuan.

Biyuhanyan: It is very likely that Qianhai will be Shenzhen's second economic launch pad. It is also a pilot zone for national financial reform.

All information is from Sina Weibo