Doubts have arisen about the long "negative list" of activities banned in the zone, as well as the conservative approach being taken to financial liberalization.

"The first month of the pilot zone did not see many policies to open up the finance sector, although many were listed in the approval (for the zone) by the State Council.

"As time passes, the ‘negative list' will be shortened. A very short list cannot be expected in such a short period," Long said.

He added that the zone is pioneering totally new innovations. Thus, related policies should be thoroughly deliberated and systematically designed, rather than hastily introduced, to maintain authority and stability.

He added the opening of the capital account within the zone won't create shocks in the domestic market, as it's aimed at better connections between China's financial markets and those elsewhere in the world.

Shanghai Mayor Yang Xiong said during a weekend meeting that financial services are intended to facilitate trade rather than to serve the financial sector.

Since the Shanghai zone became a reality, local governments from Guangzhou to Tianjin have also applied to set up their own FTZs.

"New free trade zones will be approved when the conditions are ripe. I don't think the pace of approving new zones is linked to the progress of the Shanghai zone, because different zones have different aims and purposes," Long said.

He added that the Shanghai FTZ won't directly compete with Hong Kong. Instead, Hong Kong will gain opportunities from the Chinese mainland's economic transformation.