The construction of ShanghaI Pilot Free Trade Zone and the interest rate liberalization in China

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• 作者：Sumei Luo 罗素栿/a> ; Guangyou Zhou 周光卿/a>
• 关键词：Shanghai Free Trade Zone (SFTZ) ; interest rate marketization ; capital flows ; interest rate parity
• 刊名：Journal of Shanghai Jiaotong University (Science)
• 出版年：2016
• 出版时间：April 2016
• 年：2016
• 卷：21
• 期：2
• 页码：234-246
• 全文大小：623 KB
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  [5]LIU L Y, CHEN T X, GUAN Y Z, et al. The impact analysis of capital controls on capital flows volatility [J]. International Finance, 2013(2): 37–46 (in Chinese).
  [6]LI D Y, ZHOU X R. The strategic significance of Chinese enterprises “going out” [N]. Guangming Daily, 2007-01-29(1) (in Chinese).
  
• 作者单位：Sumei Luo 罗素梅 (1)
  Guangyou Zhou 周光友 (2)
  
  1. School of Finance, Shanghai University of Finance and Economics, Shanghai, 200433, China
  2. Institute for Financial Studies, Fudan University, Shanghai, 200433, China
  
• 刊物类别：Engineering
• 刊物主题：Electrical Engineering
  Life Sciences
  Architecture
  Chinese Library of Science
  
• 出版者：Shanghai Jiao Tong University Press
• ISSN：1995-8188

文摘

It is of practical significance to study how to fully play the promoting effect of Shanghai Free Trade Zone (SFTZ) on China’s marketization of interest rate after setting up SFTZ. In terms of interest parity theory, this article tries to divide the process of China’s marketization of interest rate into different stages and conduct in-depth study of the formation mechanism of interest rate of each stage from the perspective of capital flow. The results show that marketization of interest rate is a system project. It can be divided into three stages: official interest rate supplemented market, two-track system and integration, according to the progress of marketization of interest rate, and the formation mechanism of interest rate of each stage varies. Free trade zone is a domestic and international hub for capital flow. The condition of capital flow influences capital supply, thus affecting the formation mechanism of interest rate domestically in free trade zone and promoting the progress of China’s marketization of interest rate. Marketization of interest rate, capital account liberalization, internationalization of RMB, and construction of international financial center are the supplementary, inseparable and transitional process. Therefore, the promoting effect of SFTZ on the marketization of interest rate, the capital account liberalization, the internationalization of RMB and the construction of international financial center should be made full use of. Finally, on the basis of it, this study explores hardships that China’s marketization of interest rate faces after the foundation of SFTZ and puts forward corresponding policy suggestion.