FTZ reforms lower financing costs up to 20 pct, official says

Financial reforms in the China (Shanghai) Pilot Free Trade Zone have lowered financing costs for companies in the zone by 10 to 20 percent, a Party official said.

"The financial functions are the highlights of the free trade zone, but not the only functions," Zhou Hanmin, vice chairman of the Shanghai Municipal Committee of the Chinese People's Political Consultative Conference, said earlier at the Shanghai First Internet Finance Forum.

"The free trade zone is a higher platform for reforms in areas more than the financial sector," he said.

There are now nine branches of Chinese banks, 12 sub-branches of foreign banks, 36 non-bank financial institutions and 321 financial leasing and equity investment companies in the zone.

Shanghai launched an online financial assets trading platform called www.jlfex.com earlier this year, which has attracted over 40 million yuan (US$6.5 million) in investment during the second quarter, according to the website.

Zhou said the financial services provided for borrowers and investors have lower costs due to the rise of Internet finance. He also warned regulatory improvements should accelerate to fend off credit and network security risks.