In March 2008, Tianjin was authorized to establishthe Over-the-Counter (OTC) market. In July, FirstFutures Brokerage headquarter was moved toTianjin. Tianjin will put the development of futuresas the important content of financial reform. Asthe financial agglomeration effect in Tianjin appearsand a series of reform innovation have beenput into action in the Binhai New Area, a modernfinancial service system is being established withhigh speed in Tianjin.

As early as in December 2005, when China hadno clear laws about industrial fund, the StateCouncil approved the Binhai New Area to runpilot projects of industrial investment fund. InDecember 2006, the first Chinese-funded privateequity fund—Bohai Industrial Investment Fundwas founded in Tianjin.

In March 2008, State Council approved the generalscheme of comprehensive reform and experimentaldevelopment in Tianjin, the Binhai NewArea to be more specific. The OTC market of nationwidenon-listed public companies is to settlein Tianjin Binhai New Area, which is a significantexploration of Chinese multi-level capital marketsand the OTC market.

In June 2008, the second China InternationalPrivate Equity Forum was held in Tianjin wherenearly 2,000 excellent enterprises from Chinaand more than 500 private equity investmentfunds from all over the world sought the combinationof industry and capital. This forum willbe a routine annual meeting to be held in Tianjinever since.

In addition to all these efforts, Tianjin still haslots of projects to be completed to achieve theoverall aim of financial reform and innovation.The city is to perform well in the pilot reform offoreign exchange management, intensifying theforeign exchange management reform in specialeconomy regions like Tianjin bonded zone andDongjiang Bonded Port Area; establishing TEDAInternational Financial Holding Group, developingcomprehensive pilot business and planningthe building of a financial town and a financialservice area of international level in Tianjin etc..A series of measures shows that a modern financialservice system is being built in Tianjinwith acceleration.

In June 2006, the State Council’s Opinions onQuestions Concerning the Promotion of Developmentand Opening of Tianjin Binhai NewArea clearly points out that the financial reformand innovation in Tianjin Binhai New area isencouraged. The significant reform in financialenterprises, financial business, financial marketand financial opening can be first launched andtested in Tianjin Binhai New Area.

In March 2008, the State Council officially approvedthe general scheme of comprehensivereform and experimental development in TianjinBinhai New Area and required that “using five toten years to basically finish establishing a soundsocialist market economy system in the BinhaiNew Area, to boost the new area to improve itscomprehensive strength, creative ability, serviceability and international competitiveness, bywhich the New Area can play a more vital role inpromoting the development of Tianjin, the economicrevitalization of Beijing-Tianjin-Hebei areaand Bohai region, the interaction of eastern, centraland western China, and the coordination ofthe national economic development, and providethe experience and demonstration for the developmentand reform of the whole nation as well.”