Domestic banks nodded for offshore business in FTZ

BEIJING -- The State Council, or China's cabinet, on Friday approved a pilot plan allowing Chinese banks in the Shanghai Free Trade Zone to conduct offshore business in a move to further liberalize the country's financial market.

It means Chinese banks in the zone will be permitted to provide services to depositors who are residents in other countries.

This move will be realized on condition of effective oversight, according to the detailed guideline unveiled by the State Council.

Shanghai FTZ, which serves as a test ground for financial reforms, will also let eligible foreign-funded financial institutions to set up banks, and team up with qualified private banks to establish joint-ventures.

Don't miss:

China to inaugurate Shanghai FTZ on Sept 29

Top car company 'set for Shanghai FTZ'

Shanghai FTZ tests China's currency liberalization

Shanghai FTZ 'will have innovative tax policies'

Shanghai FTZ 15% corporate tax rate rumor denied