Shanghai supports internationalization of financial markets

China's major financial authorities together with the Shanghai government have issued 30 opinions on ways the city's can become an international financial center and the integrated development of the Yangtze River Delta region.

After approved by the State Council, 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 government have put forward 30 opinions, attaching importance to further promoting the city's opening up in financial sector as well as the construction of the Lingang New Area of Shanghai Pilot Free Trade Zone.

To serve the real economy, the Lingang New Area will pilot more open, green financial policies, pushing forward the internationalization of the yuan.

"We will accelerate the development of Shanghai as an international financial center, further open the financial sector to the outside world, optimize allocation of resources, and improve the quality and efficiency of financial services," according to an official statement.

For instance, qualified commercial banks are allowed to set up financial asset investment companies in Shanghai. Such financial asset investment companies, meanwhile, will be enabled to establish specialized investment subsidiaries in the city, to participate in businesses such as corporate restructuring, equity investment and direct investment which are related to the construction of the Lingang area as well as the economic restructuring, industrial upgrading and coordinated development of the Yangtze River Delta region.

Also, Shanghai will support financial institutions and large technology enterprises to set up fintech companies in Lingang, to actively and prudently explore the application of new technologies such as artificial intelligence, big data, cloud computing and blockchain in the financial field, and to attach greater importance to the training of fintech talent.

The city will liberalize investment and trade. For qualified enterprises in Lingang, banks in the area will directly handle cross-border yuan trade settlement. The income arising from foreign direct investment, cross-border financing and overseas listing can also be directly used for payment within China.

Shanghai will support foreign-funded financial institutions to establish or control securities institutions and fund management companies. 

The limits for shares owned by foreign players in personal insurance businesses will be lifted from 51 percent to 100 percent.

Also of note, the city will support qualified sci-tech innovation enterprises in listing and financing, and encourage various intellectual property services and assessment institutions to develop models for patent value assessment.

The city will try to offer easier foreign exchange services, supporting foreign investors to directly participate in the SSE STAR Market.