Opportunities and Challenges of China (Shanghai) Pilot Free Trade Zone on Chinese Financial Industry

In order to follow the global economic trend and achieve further development, Chinese government decided to establish China (Shanghai) Pilot Free Trade Zone, which would be given several preferential policies in new areas in September 2013. Firstly, the thesis will distinguish between the concepts of the free trade zone and the bonded area. Secondly, it will introduce the preferential policies in financial area and make analysis about them. Thirdly, the impacts on Chinese financial sector and the real economy will be explained. Finally, the opportunities and challenges that Chinese financial industry will encounter are shown, and then recommendations are given.