Shanghai Steps Up Building of International Financial Centre and Integrated Development of YRD

Shanghai is to step up its development as an international financial centre, and facilitate the integrated development of the Yangtze River Delta (YRD) region. Among 30 newly proposed measures are the following:

• Promotion of pilot financial reforms in the Lingang New Area
  The Lingang New Area will be given support to develop key industries with international competitiveness. For example, the wealth management subsidiaries of qualified commercial banks are to be allowed to establish specialised investment subsidiaries in the city on the principle of voluntary participation in commerce to invest in the equities of key construction projects and unlisted companies in the Lingang New Area and the YRD.

• Acceleration of the city’s financial opening-up at higher levels
  The financial sector will be further liberalised. Qualifying commercial banks will be given support to establish wealth management subsidiaries in Shanghai. Pilot foreign financial institutions and large banks will also be allowed to set up joint-venture wealth management subsidiaries in the city.

• Financial support for YRD integrated development
  Co-operation between financial institutions across regions will be promoted. Mobile payment services between cities in the YRD region will be improved with the aim of achieving compliance and connectivity in payment of public services in the region.

Full details can be found in the Opinions on Further Accelerating the Development of Shanghai into An International Financial Centre and Giving Financial Support to the Integrated Development of the Yangtze River Delta (Yin Fa No. 46 [2020]). The directive was jointly issued by the People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange and the Shanghai Municipal People’s Government on 14 February 2020.

Source: State Administration of Foreign Exchange