Shanghai local government published measures aimed to regulate the type of foreign investments in the newly established Free Trade Zone. The document comprise a total of 190 international management measures for foreign investments and a list investments that are either restricted or forbidden for foreign investors: thus, any type of investment not included in the list is allowed. The list is quite extensive and will be unpractical to include it in this post, but it can be seen (in Chinese) in the website of Shanghai Government.

Further, China Securities Regulatory Commission will allow qualified individuals and entities to invest in both domestic and overseas securities and futures markets under the relevant rules. In addition, parent companies of branches based in the Shanghai FTZ will be allowed to issue RMB bonds in the domestic Chinese market. Also securities and futures firms are encouraged to incorporate subsidiary companies in the free trade zone.

Finally, China Insurance Regulatory Commission, by replying to its Shanghai Branch Bureau, confirmed that foreign investors will be allowed to establish professional health insurance agencies and insurance companies are encouraged to set up branches to carry out RMB cross-border reinsurance business. In addition, the authorities support research and exploration of catastrophe insurance mechanisms in Shanghai, encourage insurance agencies within the Zone to carry out outbound investments, and supports the extension of the scope and proportion of existing outbound investments by insurance agencies. Some of the provisions above will be implemented only on a pilot base for the time being.


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