AGL 40.10 Increased By ▲ 0.10 (0.25%)
AIRLINK 131.00 Increased By ▲ 1.47 (1.13%)
BOP 6.84 Increased By ▲ 0.16 (2.4%)
CNERGY 4.62 Decreased By ▼ -0.01 (-0.22%)
DCL 8.92 Decreased By ▼ -0.02 (-0.22%)
DFML 43.25 Increased By ▲ 1.56 (3.74%)
DGKC 83.65 Decreased By ▼ -0.12 (-0.14%)
FCCL 32.90 Increased By ▲ 0.13 (0.4%)
FFBL 77.92 Increased By ▲ 2.45 (3.25%)
FFL 12.22 Increased By ▲ 0.75 (6.54%)
HUBC 110.60 Increased By ▲ 0.05 (0.05%)
HUMNL 14.49 Decreased By ▼ -0.07 (-0.48%)
KEL 5.59 Increased By ▲ 0.20 (3.71%)
KOSM 8.35 Decreased By ▼ -0.05 (-0.6%)
MLCF 39.50 Decreased By ▼ -0.29 (-0.73%)
NBP 62.35 Increased By ▲ 2.06 (3.42%)
OGDC 199.00 Decreased By ▼ -0.66 (-0.33%)
PAEL 26.60 Decreased By ▼ -0.05 (-0.19%)
PIBTL 7.77 Increased By ▲ 0.11 (1.44%)
PPL 159.99 Increased By ▲ 2.07 (1.31%)
PRL 26.67 Decreased By ▼ -0.06 (-0.22%)
PTC 18.65 Increased By ▲ 0.19 (1.03%)
SEARL 83.30 Increased By ▲ 0.86 (1.04%)
TELE 8.22 Decreased By ▼ -0.09 (-1.08%)
TOMCL 34.35 Decreased By ▼ -0.16 (-0.46%)
TPLP 9.05 Decreased By ▼ -0.01 (-0.11%)
TREET 16.96 Decreased By ▼ -0.51 (-2.92%)
TRG 60.31 Decreased By ▼ -1.01 (-1.65%)
UNITY 27.88 Increased By ▲ 0.45 (1.64%)
WTL 1.41 Increased By ▲ 0.03 (2.17%)
BR100 10,605 Increased By 198.6 (1.91%)
BR30 31,978 Increased By 264.4 (0.83%)
KSE100 98,990 Increased By 1661.5 (1.71%)
KSE30 30,842 Increased By 649.4 (2.15%)

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 US business lobby group said on Thursday. The American Chamber of Commerce in Shanghai said that for the city to become a financial centre 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's State Council, or cabinet, announced plans a decade ago to build Shanghai into an international financial centre by 2020. The AmCham Shanghai report, titled "Shanghai 2020: A Financial Vision Unfulfilled", drew conclusions from a recent survey with financial industry executives.
"In China, capital controls show little sign of being lifted. But unless they are, Shanghai's international financial centre 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."
It also said Shanghai should make rules transparent and predictable in financial markets, while removing excessive regulation and creating a level playing field. Shanghai officials could not immediately be reached for comment.
In January, eight Chinese regulators issued an action plan for the city to become a leading global financial market by next year, state media reported. Most respondents to the AmCham survey said it was more difficult to obtain a licence in Shanghai than in other financial centres, with several executives citing the absence of recognisable "standards" in the approval process as a fundamental weakness, the report said.
They also noted the practice in Shanghai of window guidance, or unofficial instructions from regulators. Foreign banks believe such communication is provided earlier to domestic banks than to their Western peers, putting foreign businesses at a disadvantage.

Copyright Reuters, 2019

Comments

Comments are closed.