China took another step toward liberalizing its financialregulations last fall by establishing the Shanghai Free Trade Zone,which now serves as a laboratory for trying out new rules andregulations for doing business in China.

Chinese regulators have proposed regulatory changes within thezone affecting everything from the interest rate paid on depositsto customs processes and cross-border pooling.

The free trade zone in Shanghai “will be a testing ground forall future reform in China,” said Debra Lodge, a managing directorand head of renminbi (RMB) business development for HSBC NorthAmerica. “In 2014, we are expecting a lot of change, additional newpilots and just easier processes for multinationals to dobusiness.”