(Yicai Global) June 14 -- Shanghai has been chosen to undertake the historic mission of building an international financial center in China, according to its Party Committee Secretary.
“As China comes ever closer to the center of the global stage today, we need, more than ever before, to establish a strong financial system and create an international financial center that befits the country’s economic strengths and the international status of the yuan,” Li Qiang said at the opening of the Lujiazui Forum today.
The first point of action will be to accelerate the formation of a global service system for the yuan to give ‘Shanghai prices’ greater global influence and to continuously enhance the yuan’s capability in terms of investing in financial resources worldwide, he added.
The eastern metropolis will also work with the central government to pilot important financial reforms in the city, use its free trade zone to help Chinese and foreign institutions access Belt and Road financial service projects, and find a path to capital account convertibility, Li said. Shanghai will also support financial institutions and market participants in their pursuit of technological innovations.
The finance sector should strengthen services for microbusinesses and create a market governed by rule of law to stabilize expectations among various players, and protect investors, he added.
Shanghai will also address problems associated with local residence registration for Chinese and foreign professionals, and tackle issues with school admission and healthcare services so they can better support the city’s development, Li continued.
The Shanghai Futures Exchange will also set up a petroleum delivery base in collaboration with neighboring province Zhejiang’s pilot free trade zone, encourage bond offerings from issuers outside the Yangtze River Delta, set up industry and equity investment funds and stepping up the regional credit building initiative to support innovative companies as they look to issue shares on the Shanghai Stock Exchange.
Editor: James Boynton