Foreign-currency deposit rates relaxed in Shanghai   

首項(xiàng)自貿(mào)新政推廣至區(qū)外 上海放開小額外幣存款利率上限

中國人民銀行上�？偛�26日宣布，經(jīng)中國人民銀行總行批準(zhǔn)，決定從6月27日起將放開小額外幣存款利率上限的改革試點(diǎn)由上海自貿(mào)試驗(yàn)區(qū)擴(kuò)大到上海市。[查看全文]

Shanghai (ECNS) – China has decided to expand a trial in the Shanghai Free Trade Zone (FTZ) to the whole city to let banks set foreign-currency deposit rates.

The People's Bank of China announced Thursday that starting from June 27, it will remove the ceiling on the interest rates of small foreign-currency deposits of less than $3 million. This will apply only to companies at first, but could be extended to individuals.

It will be the first financial policy to "graduate" from the Shanghai FTZ after a successful trial since March 1. The free trade zone is used by the government as a testing ground for economic and financial innovations.

Removing the cap means the market will play a greater role in setting interest rates. However, analysts view it as a small step toward the liberalization of interest rates throughout the country, as foreign-currency deposits only account for a small share of China's total deposit base.