The 11th Lujiazui Forum is held on June 13-14 in Shanghai. [Photo/cnstock.com]

"The People's Bank of China (PBOC) will support the establishment of an integrated account system for local and foreign currencies in the new section of the China (Shanghai) Pilot Free Trade Zone and carry out a more convenient cross-border capital management system," said Yi Gang, head of PBOC, at the 11th Lujiazui Forum.

Expanding the Shanghai FTZ to include a new area is one of Shanghai's three key tasks put forward by the central government at the first China International Import Expo. It has become a hot topic at the 11th Lujiazui Forum.

Shanghai FTZ's expansion implies the upgrading of the opening-up policy and institutional reform, according to Ma Chunlei, deputy secretary-general of the Shanghai government and director of the Shanghai Municipal Development & Reform Commission.

"The FTZ focuses on the facilitation of investment and trade, while the new section will pay more attention to the liberalization of investment and trade, making innovative breakthroughs in investment, trade, capital, personnel and other aspects," Ma noted at the forum.

"We hope that the Shanghai FTZ's new section will become a window for China to showcase its determination, confidence, and effectiveness in deepening its opening-up in the future, as well as serve as a pilot area for high-level open economic policies and systems," he added.

Containers are organised in stacks at the Yangshan Deep Water Port, part of the Shanghai Pilot Free Trade Zone in Shanghai on Feb 13, 2017. [Photo/VCG] 

During the forum, Ren Deqi, president of the Bank of Communications, Richard Teng, chief executive officer of the Financial Services Regulatory Authority of the Abu Dhabi Global Market (ADGM), Arnaud de Bresson, chief executive of Paris Europlace, and Zheng Yang, director-general of the Shanghai Financial Work Bureau, shared their insights on how to innovate in investment, trade, capital, and personnel.

Ren expressed wishes that the policy and system shall be innovated according to international practices, as well as market and legal principles. Teng suggested that more attempts be made on foreign exchange control and RMB internationalization.

De Bresson expressed concern about foreign institutions' access to the Chinese market. 

"French companies look forward to more investment in China, hoping that Shanghai FTZ will further its opening-up and provide foreign banks and capital management institutes with easier access," he said.

According to Zheng, Shanghai will deepen financial reform and innovation in the FTZ, with a focus on the new section, to implement more effective opening-up measures and greater risk stress testing.

In addition, Shanghai will soon launch local financial regulations, build a testing center for financial risk management and pressure, as well as pilot more financial products, more innovations, and more and reform measures in the city.