NPC deputy: Lin-gang Special Area needs tougher stress tests

A detailed proposal has been made in Beijing for the Lin-gang Special Area – located in East China's Shanghai – to undertake more rigorous functional stress tests, in order to reinforce its standing and achieve its ambitions on the international stage.

Yuan Guohua, deputy to the National People's Congress and deputy secretary of the Party working committee of the Lin-gang Special Area, put forward the proposal to the ongoing congress. "In order to be a special economic functional area with a strong global market influence and competitiveness, the Lin-gang Special Area needs to conduct tougher stress tests," Yuan said.

The deputy added that Lin-gang needed greater autonomy in the flow of its capital, foreign exchange management and tax arrangements.

The central Party has given Lin-gang the mission to strive to become an important hub for the overall development of onshore and offshore businesses.

It is being tasked with vigorously developing renminbi offshore trading, cross-border trade settlements and overseas financing services – as well as to build an international financial asset trading platform and enhance the price influence of important commodities.

To achieve these goals, Yuan made five suggestions.

Firstly, that the special area identify the leading departments at the national level to promote the implementation of major functional platforms, such as an international financial assets trading platform, as soon as possible.

Secondly, that it build an offshore economic function pilot zone in the Lin-gang Special Area to conduct tougher stress tests.

Thirdly, that the area supports cross-border RMB settlements of offshore trade (including entrepots) in Lin-gang, in accordance with international practice.

Fourthly, that it supports optimized offshore functions for existing accounts in Lin-gang.

Lastly, that its administration supports the innovation of an "offshore tax" in Lin-gang.