PBOC Launches Shanghai FX Pilot as Beijing Pushes Offshore Finance to Challenge Hong Kong
Updated
Updated · South China Morning Post · Jun 25
PBOC Launches Shanghai FX Pilot as Beijing Pushes Offshore Finance to Challenge Hong Kong
3 articles · Updated · South China Morning Post · Jun 25
Summary
Pan Gongsheng this month unveiled a pilot foreign-exchange trading program in Shanghai’s free-trade zone, marking Beijing’s clearest new step to expand the city’s offshore finance role.
The FX scheme is part of an action plan that also covers free-trade-zone offshore bonds, offshore trade financing, international treasury centers and other cross-border financial services.
Beijing’s explicit backing—and the speed of Shanghai’s buildout—has sharpened questions over whether Hong Kong’s long-held lead in offshore finance can withstand sustained mainland competition.
Six major Chinese banks were already allowed last week to conduct direct offshore yuan transactions from the mainland, showing a broader push to link domestic and offshore markets more closely.