The guidelines to financial reforms in the Shanghai free trade zone was released by the State Council on Friday. Banks are competing against time to set up branches in the pilot zone as it is to open officially on Sunday.

"We have submitted our application to set up a branch in the free trade zone. The regulator is in the process of examining this. We will adopt a special module; the headquarter will plan, assess the branch's business, and our Shanghai branch will undertake some daily management."said Qian Wenhui, Exec. Vice President, Bank of Communications.

Policymakers hope to catalyze further reforms in the world's second-largest economy through such an experiment.

"The principle is that financial reforms have to serve and support the real economy. More detailed policies will be announced, and different financial products in various fields will be released gradually." said Wang Xinkui, Chairman of Shanghai WTO Affairs Consultation Center.