Shanghai aims to increase its financial power

Updated 2018-05-14 09:30:03 China Daily

Shanghai officials released a detailed guideline recently for further opening-up in the financial sector, responding to President Xi Jinping's speech at last month's Boao Forum for Asia.

Xi said during his speech on April 10 that China will carry out a number of important policies to open up further. The next day, Yi Gang, governor of the central bank, announced 12 opening-up policies, five of which will be implemented over the next few months.

According to Shanghai's financial services office, efforts will be made in fields including banking, securities, insurance, financial markets and free trade accounts, as well as touching on entry policies for bank-card clearing institutions and nonbank payment institutions.

Under the new guideline, foreign banks will be allowed to set up branches and subsidiaries in Shanghai. Commercial banks will be able to set up financial asset investment companies and wealth management companies with no foreign capital limit.

Meanwhile, foreign-controlled securities companies, investment funds and futures companies will be allowed to establish operations in Shanghai to provide brokerage and consulting services.

Foreign insurance services will be expanded to include both insurance agencies and assessment services. In addition, foreign-controlled life insurance companies will be allowed to operate in the city.

Financial markets will be further opened to overseas investors. Innovative companies from overseas will be encouraged to issue Chinese depositary receipts to trade in the Chinese A-share market.

The scale of Panda bonds - referring to yuan-denominated bonds issued in the Chinese mainland market by an overseas entity - will be expanded.

The free trade account, which was launched within the China (Shanghai) Pilot Free Trade Zone in 2014, will see its function and range of applications expanded to the Yangtze River Delta region to facilitate the internationalization of the renminbi. The financing and investment functions of free trade accounts will be further explored, the guideline said.

In addition, restrictions on credit rating services provided by foreign financial companies will be relaxed.

Li Jun, deputy director of the Shanghai financial services office, said the changes will make Shanghai an important crossroads for domestic and foreign capital.

Direct financial settlements in Shanghai last year amounted to 7.6 trillion yuan (0 billion), more than 85 percent of the national total. About 30 percent of the financial institutions registered in Shanghai were foreign-backed.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58March 19 2019 01:36:56

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16March 19 2019 01:36:56

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18March 19 2019 01:36:56

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords