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Shanghai Aims To Become Global RMB Product Center by 2015

 China plans to make Shanghai, the country’s financial
hub, a global center for innovation, transaction, pricing and clearing
of RMB-denominated financial products by 2015, the country’s top
economic planner said Monday.

The plan will be part of China’s bid to build Shanghai into an
international financial center by 2020 amid a shifting global financial
landscape, with China’s economic weight and its currency taking a more
prominent position on the world stage.

The 12th Five-Year Plan period (2011-2015) will be “a period of
strategic opportunities” for the construction of the international
financial center, the National Development and Reform Commission (NDRC)
said in a statement.

The government aims to increase the total transaction value of all
financial markets in Shanghai, barring foreign exchange markets, to
around 1 quadrillion yuan (158.5 trillion U.S. dollars) by 2015, the
statement said, quoting an unnamed Shanghai government official.

That will be more than double the transaction value of 2010, which
stood at 386.2 trillion yuan, up 10 times from 2005, according to the

By 2015, direct financing will account for around 22 percent of the
social financing scale in Shanghai, while assets under management will
reach 30 trillion yuan, the official said.

The scale of overseas investment in Shanghai’s financial markets will
be markedly expanded by that time, with major stock indices and
commodities futures prices of those markets having a greater global
influence, he said.

Meanwhile, the Shanghai Interbank Offered Rate and the RMB central
parity rate will become major benchmarks for domestic and foreign RMB
asset pricing and transactions.