Platform to aid trade financing in FTZ

The People's Bank of China, the nation's central bank, is considering establishing a draft trading platform within the China (Shanghai) Pilot Free Trade Zone to promote trade financing, said an expert close to the matter.

Pan Yingli, a professor at Antai College of Economics and Management at Shanghai Jiaotong University, and an independent director with China Merchants Bank Co Ltd, said such a platform, though still in its formative stages, will be key in developing a yuan-denominated financial market system.

"It will promote the internationalization of renminbi and Shanghai's role as an international financial center," said Pan, who added that the US dollar benefited from a similar trading platform in New York when becoming a global currency.