The South China Morning Post cited information from a circular from the State Council to ministries and provincial governments that more than 20 sectors are to be opened up to overseas investors in the FTZ.
Foreign investors will be allowed to own a controlling stake in joint venture shipping agencies, with the investment cap raised to 51% from 49%.
Raising the cap would encourage the world’s shipping lines to expand in China, allowing them to directly tap the booming business at Shanghai’s Yangshan deepwater port, which is part of the FTZ, according to industry officials quoted by the report.
Analysts, however, said the latest moves were more symbolic than substantive as it would still be hard for overseas companies in the listed sectors to set up shop in the FTZ due to its limited size, the report added.
Since the FTZ started in September 2013, China has yet to deliver large-scale deregulation and free yuan convertibility under the capital account in the zone as promised.
As a result, newly registered foreign companies, excluding those from Hong Kong, account for only about 5% of the total at the FTZ.
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