SHANGHAI (Reuters) – China’s commercial capital of Shanghai is still far from its goal of becoming a global financial hub by 2020 due to hurdles such as capital controls and a lack of consistent rules, a report by a U.S. business lobby group said on Thursday.
The American Chamber of Commerce in Shanghai said that for the city to become a financial center on par with London or New York, China should make its yuan currency fully convertible, improve transparency and lift internet restrictions in the city.
China - State - Council - Cabinet - Decade
China’s State Council, or cabinet, announced plans a decade ago to build Shanghai into an international financial center by 2020.
The AmCham Shanghai report, titled “Shanghai 2020: A Financial Vision Unfulfilled”, drew conclusions from a recent survey with financial industry executives.
China - Capital - Controls - Sign - Shanghai
“In China, capital controls show little sign of being lifted. But unless they are, Shanghai’s international financial center status ambitions will come to naught,” said the report.
AmCham Shanghai urged China to make its currency fully convertible, arguing that otherwise, “it’s difficult to envisage Shanghai ever achieving its ambition.”
Shanghai - Rules - Markets - Regulation
It also said Shanghai should make rules transparent and predictable in financial markets, while removing excessive regulation and...
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