SHANGHAI, Nov. 30 – The country’s first interbank clearing house was launched in Shanghai on Saturday cementing government goals to make the city an international financial hub.

The interbank market with a registered capital of RMB300 million will comprise of banks, securities firms, and asset management companies which trade currency derivatives, bonds and commercial bills and other financial instruments says Shanghai Daily.

The Shanghai Clearing House will streamline the trading of financial derivatives in the market as well as lessen risks and increase regulation efficiency. It was established in cooperation with the country’s central bank affiliates China Foreign Exchange Trading System, China Government Securities Depository Trust & Clearing Co, China Banknote Printing and Minting Co and China Gold Coin Co.

“The clearing house will help improve clearing efficiency, reduce clearing costs and provide technical support for innovations in financial products,” Zhou Xiaochuan, governor of the People’s Bank of China said during the opening ceremony.

The government has mapped out plans to make Shanghai the mainland’s center for foreign exchange, gold and interbank markets as well as its major stock exchange and futures bourse by 2020.