Shanghai Free Trade Zone has not become channel for hot money: central bank official

[SHANGHAI] China's Shanghai Free Trade Zone has not become a channel for hot money outflows or arbitrage, a central bank official said on Thursday.

Zhang Xin, the vice director of the People's Bank of China Shanghai head office, also said the zone has already achieved the conditions for full convertibility of the yuan.

His comments came in a speech at an event in Shanghai.

The remark on hot money comes as some analysts have expressed concerns that liberalisations to the capital account within the pilot zone could be abused by corrupt officials or those engaging in complex forms of trade or currency arbitrage across the border of the zone.

REUTERS