China supports offshore yuan trading in Shanghai’s Pudong

SHANGHAI, July 15 (Reuters) – China will support the development of offshore yuan trading in Shanghai, and will explore yuan futures trading, as part of efforts to further reform and open up the city’s Pudong New Area, according to guidelines published on Thursday by China’s State Council, or cabinet.

China will also allow qualified foreign institutional investors to participate in public share sales at Shanghai’s tech-focused STAR Market, and will introduce market makers in that market, according to the guidelines, published via state-owned Xinhua News Agency.

China will also support the Shanghai futures Exchange to explore the setup of a national commodities warehouse receipt registration centre, and develop bonded warehouse receipt business.

In addition, China will build a large-scale national precious metal reserve warehouse in Shanghai, and support the Shanghai Petroleum and Gas Exchange to launch more products, so as to become a global centre for oil & gas trading and pricing, according to the measures.

China will also help Pudong become a high-tech hub, with a focus on areas such as semiconductor, life science and artificial intelligence (AI). The government will study corporate tax reductions for high-tech companies, according to the guidelines.

The guidelines did not give a time frame for these measures. (Reporting by Samuel Shen and Emily Chow Editing by Alistair Bell)

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Reuters Staff