Shanghai amends regulations to solidify its role as a global financial hub

SHANGHAI,Sept. 3,2024 -- A news report fromenglish.shanghai.gov.cn:

The legislature of Shanghai passed revised regulations on August 22 to further advance the city as an international financial center.

The regulations,which will take effect on October 1,emphasize deepening financial reforms,thus bolstering support for the real economy and mitigating financial risks while establishing a strong legal foundation for Shanghai's pivotal role in national finance.

A major focus of the revised regulations is enhancing Shanghai's financial infrastructure and institutional framework.

The city will encourage the establishment of headquarters and specialized branches of financial institutions to facilitate growth of a diversified financial ecosystem.

To strengthen the capital markets,Shanghai will improve financial metrics,such as the "Shanghai Price" and "Shanghai Index," and develop Chinese yuan asset pricing benchmarks.

Additionally,a national platform for bulk commodity circulation will be built,underscoring Shanghai's role in the global trading system.

In terms of financial innovation,the city aims to position itself as a global fintech center. This includes developing infrastructure,key institutions,and innovation platforms for fintech and advancing research,development,and application of digital renminbi.

Pilot zones will be established to support financing for technology firms,with the Lin-gang Special Area leading innovations in tech insurance.

The regulations also support green finance by developing service platforms and certification institutions,promoting the coordinated growth of financial and carbon markets.

The regulations address the growing needs of the elder sector and silver economy,encouraging innovation in financial products related to elder care and health.

Additionally,the city will deepen the application of digital platforms to expand inclusive finance and support the development of supply chain finance.

The revised regulations also promote high-level financial opening-up by advocating the use of renminbi in global markets,including bulk commodities,cross-border e-commerce,shipping services,and international investment and financing.

Shanghai also aims to establish itself as a global asset management center and an international reinsurance hub.

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