Shanghai Plans to Turn Lingang Into Emerging Financial Center by 2025
Yi Xing
DATE:  Aug 16 2022
/ SOURCE:  Yicai
Shanghai Plans to Turn Lingang Into Emerging Financial Center by 2025 Shanghai Plans to Turn Lingang Into Emerging Financial Center by 2025

(Yicai Global) Aug. 16 -- Shanghai plans to transform Lingang Special Area, a special economic space in the eastern Chinese city’s free trade zone, into an emerging financial center by 2025.

Lingang’s financial center will feature smart finance, openness and integration, and collaborative governance, according to an action plan the area’s management committee released yesterday.

Lingang is home to a great number of emerging industries that need suitable and unique financial services and products, said Jin Penghui, head of the Shanghai branch of the People’s Bank of China, adding that accelerating the growth of these industries will provide targeted support to the real economy and acute insight into the future development trend.

“The plan includes new financial products, such as shipping derivatives, new financial platforms, including an international financial asset trading platform, and new rules and regulations to pilot projects on cross-border flow of financial data,” Jin noted. “Many of these are innovative reforms and need the collaboration of different departments and agencies.”

To support new forms of trade, the financial sector must improve the facilitation of receipts and payments, promote the innovative development of offshore trade, and advance the construction of key platforms, including a petroleum and natural gas exchange, according to the plan. The specialized action for shipping finance must enrich the financing channels of shippers and support the development of the shipping and derivatives markets, it added

With regards to cross-border finance, Lingang must advance the construction of a global financial asset trading platform, promote the headquarters economy, and improve the qualified foreign and domestic limited partners regimes and pilot projects to open up cross-border trade and investment at a high level. It must also support banks to enhance their offshore business and bring free-trade non-resident accounts into better play

The Shanghai branch of the China Banking and Insurance Regulatory Commission approved the setting up of the HSBC’s Shanghai Lingang branch last month, Wang Yunfeng, vice chairman of HSBC Bank China, said at the press briefing to release the action plan.

Once open, the branch can rely on HSBC’s global network and experience in cross-border financial services to promote offshore trade and the headquarters economy in Lingang, he noted

United Overseas Bank China will continue one-stop financial services to Chinese and foreign firms based on its business network and experience in the Association of Southeast Asian Nations and implement innovative solutions with partners in cross-border fund management, offshore trade, overseas fund investment, and sustainable finance, UOB China President Fu Maozan told Yicai Global.

Editor: Futura Costaglione

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Keywords:   Shanghai,Lin Gang,Emerging Financial Center