(Yicai Global) Dec. 3 -- Building Shanghai into an international finance center is a long-term strategic task, and the city must open up further to better integrate domestic and overseas financial resources, according to Tu Guangshao, one of its former vice mayors and a one-time deputy head of China’s securities watchdog.
Shanghai must focus on two aspects in making itself into an international financial center, Tu Guangshao, said in keynote speech at the Financial Summit of China Financial Value Ranking held in Shanghai yesterday.
The first is to deepen financial supply-side reforms to improve the functioning of the financial markets as well as expand high-level financial opening up to enhance the city’s ability to allocate international financial resources. Shanghai should also improve its financial infrastructure to consolidate the foundation for further development, he said.
The second is to grasp opportunities to develop new industries such as asset management, financial technology, and green finance. Institutional opening up is the focus of Shanghai becoming a global financial hub in the next stage, and it is a more fundamental, longer-term and more sustainable financial opening up, Tu said.
As a global financial center, Shanghai needs to do more to be part of the construction of global financial systems and governance and should be able to offer more internationally influential financial systems, such as rules, regulations, standards and management, to demonstrate its global importance, Tu noted.
“Shanghai must be interconnected with international standards in financial systems, rules, management and criteria and even take the lead globally,” he said.
Being market-oriented, international, governed by law, digital, and green will be the key in the new phase of Shanghai becoming a global finance hub, Tu added.
Tu was vice mayor of Shanghai from 2007 to 2016 and vice chairman of the China Securities Regulatory Commission from 2002 to 2007. Tu is now executive director of the Shanghai Advanced Institute of Finance at Shanghai Jiao Tong University.
Editors: Tang Shihua, Peter Thomas