Standard Chartered News Update: Trade in Shanghai Proposed
Standard Chartered news update: Along with fellow China operating company HSBC, Standard Chartered have voiced an interest in a free trade zone in Shanghai.
There has been proposed a ‘free trade zone’ in Shanghai and this has been supported by two of the largest banks in the world, both of whom make the majority of their profits across in the Asian-Pacific region.
Shanghai has been selected for this development because of its locale. The port city has more people than Greece and Portugal put together and therefore has the population and location to promote itself to the top of the global finance market.
As one of the company’s dedicated to furthering the development of the banking market in this region and with HSBC expressing an interest in assisting with this, they have made positive moves with regards to the free trade zone that has been proposed.
Standard Chartered News Update
The appeal of this free trade zone for all involved revolves around the slacker rules regarding things such as interest rates and business licenses. These perks will attract a large number of international corporations which will contribute to Shanghai’s ambition to become a global finance hub by 2020.
The zone has to be able to trade on level footing with banks in all the major cities across the globe, most notably New York, London and Hong Kong. The first move to this type of trading zone has been made for an 11 square mile space in Shanghai and this has been described as a critical move towards opening up the world’s second largest economy as well as developing this global trade zone.
There has been contradictory perspectives emerging out of the zone however as HSBC claim to have been approached by the CBRC (China Banking Regulatory Commission) about the prospect of offering their banking services in this area, the CBRC have however declined to pass comment on the subject.
Research is being conducted with regards to how the various companies – HSBC and Standard Chartered to name two – would conduct their business in the zone. There is a need to pull in interest as well as customers and therefore this research is designed to organise the structure of the trade free zone so that the optimum business is conducted.
This zone will help boost China’s economy which is already solidly on an upward gradient – since 2009 Shanghai’s economy has grown about another third and has reached in excess of 2 trillion yuan. The Chinese city’s economy is now ranked 10th in the world and their GDP has grown 2.7 per cent over the same time period.
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