Firewall set up to monitor FTZ transactions heralds reform rules

China has set up a firewall to monitor transactions made by capital accounts in Shanghai's pilot free trade zone in real time, increasing hopes the country may announce rules to liberalize interest rates and capital accounts in the zone next month as part of its financial reform efforts to power the economy.儲存The People's Bank of China has set up a firewall that can distinguish accounts set up in the FTZ from those opened outside, and authorities will monitor transactions made by the accounts in real time, Li Xunlei, chief economist of Haitong Securities, told a forum in Shanghai yesterday.Hopes are high that the third plenum of the 18th Communist Party of China Central Committee to be held next month will unveil reforms needed for China's economy.The reform plan, which includes liberalizing interest rates and capital accounts mini storagen the zone, was "probably the most ambitious" economic initiatives China has ever taken, Credit Suisse said.Meanwhile, Nomura said it was a "step in the right direction" but pointed out that the government must have the will in implementing the reforms.The Development Research Center affiliated with the State Council has set out eight key areas for reform — finance, taxation, land, state assets, social welfare, innovation, foreign investment and governance, the China News Service reported over the weekend.The proposal for policy changes covers aspects from reducing administrative approvals, breaking monopolies, lowering barriers to entry in the financial industry, to setting up a deposit-insurance system. It also involves making the yuan a reserve currency in some markets and setting up funds to invest and manage state assets.self storage