China's reform in free trade zones to deepen: State Council

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Measures will be taken to deepen reform in free trade zones (FTZs), and qualified individuals in them will be allowed to invest in overseas securities under relevant rules, China's State Council said on Friday.

Banks in FTZs will also be allowed to conduct yuan derivative businesses on behalf of overseas institutions, while qualified FTZs will be able to launch pilot schemes for intellectual property rights securitization, the State Council said in a statement on its website.

China has established 12 free trade zones over the past five years. As pioneers of the government's reform in investment, trade and duty transformation, the FTZs have created innovative mechanisms, becoming role models of China's reform and opening up in the new era.

China established its first pilot FTZ in Shanghai in September 2013. It covers a total area of 28.78 square kilometers, including the Waigaoqiao Bonded Area, Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area and Pudong Airport Free Trade Zone, serving as a new testing ground for China's reform and opening up.

China rolled out a plan for building its southern island province of Hainan into a pilot free trade zone in October.

The plan explicitly states that Hainan FTZ's key areas for reform will focus on its specialty industries such as tourism, information, agriculture, marine economy, and the modern service economy.

Major steps will be taken by 2020, laying a solid foundation for the building of the Hainan free trade port.