Watershed moment

Gregory Chin, a professor of political economy at York University in Toronto, Canada and a former Canadian diplomat in Beijing, said the new policies in financial services for the zone mark "an important watershed moment" in Shanghai's efforts to build a greater role as a hub for onshore renminbi business as well as cross-border renminbi business.

"For a long time, especially since China entered the World Trade Organization, foreign banks and financial interests have wanted more room to operate inside the Chinese market, especially in the Shanghai area," said Chin.

"Foreign financial institutions see enormous business potential inside China, especially if they can expand into more areas of renminbi-based lending and other renminbi-denominated financial activities."

Sophii Weng, an economist with Standard Chartered Bank in New York, said the Shanghai FTZ is still in "conceptual territory", even with certain new policies in the banking sector. She said the blueprint for the banking sector lacks "details".