China opened its new Shanghai pilot free trade zone Sunday that has been called a test for deepening market-oriented financial reforms for the next decade, state media said.
The project provides more open trade in services, with foreign and private investment permitted in 18 service sectors including finance, shipping, commerce and culture.
It also promises to liberalize foreign currency exchange, which analysts see as a key part of Shanghai's drive to build itself into an international financial centre by 2020.
The official Xinhua news agency said China's four major commercial banks had already applied to regulators to operate inside the zone.
The Shanghai city government said the zone had "raised hopes that China will deepen its economic reforms" as the ruling Communist Party tries to shift the world's second-largest economy away from its long reliance on investments and exports.
The government approved the suspension of several regulations on foreign investment in the Shanghai zone for three years, but it is not expected to formulate detailed plans for several months.
Premier Li Keqiang said earlier this month that foreign trade would be allowed in all services, including new industries, unless specifically restricted.
The plan encourages multinational firms to set up regional or global capital management centres in the zone, and promises the gradual opening of commodities futures trading to foreign companies.
The zone combines four existing free trade zones and port districts into a new area that the city government said it will use to promote trade in financial services and logistics, and develop trading zones for steel, cars, chemicals and jewellery.