HSBC China and Nanyang Commercial Bank China are in the first batch of overseas banks approved to open free trade accounts for clients in the Shanghai free trade zone (FTZ). HSBC China signed agreements with more than 30 pharmaceutical, energy and automobile companies which intend to use the new FT accounts for more efficient cross-border transactions between the FTZ and overseas markets. Banks are required to connect their FT account systems with the People’s Bank of China (PBOC), which can then monitor all transactions as required under risk management rules. A total of 13 domestic banks and the Shanghai Gold Exchange have been approved in three batches to conduct FT account services. Nanyang Commercial Bank is solely-owned by the Bank of China (Hong Kong) and is registered as an overseas bank on the Chinese mainland.