PBOC announces rules for accounts in Shanghai's FTZ

The People's Bank of China released detailed rules on Thursday for the free trade account system in the China (Shanghai) Pilot Free Trade Zone, a step in the process of financial reform that will make it easier to raise funds and invest across the border.

The free trade account system enables full convertibility of the yuan and allows offshore financing in the FTZ.

The free trade account system will offer Chinese companies - especially those operating in the foreign trade sector - secure, low-cost yuan-denominated funding from offshore sources where financing costs are usually lower than in the Chinese mainland.