(Yicai Global) Oct. 13 -- As an international financial center, Shanghai is further attracting global asset management firms while exploring reforms and innovations to expand the financial market and give full play to the advantages of its business environment, according to Vice Mayor Wu Qing. That will accelerate the creation of a global asset management hub, he said.
In his opening speech at the 2021 Shanghai Global Asset Management Forum today, Wu proposed speeding up the formation of a global asset management center from three aspects. The first is to further attract asset management institutions, professional service providers and various intermediaries to gather in Shanghai to improve the ecosystem.
Secondly, Wu said, It is necessary to explore reform and innovation, strengthen the financial market, and achieve internationalization and integration while further enhancing the convenience of cross-border flow of capital management elements.
Thirdly, Shanghai should strengthen service guarantee, optimize the development environment, provide personalized and precise services for talents in the international and integrated asset management industry, and give full play to the advantages of its comprehensive business environment.
Asset management is an important bridge connecting finance and the real economy, Wu said.
According to a previously released plan, building a global asset management hub is one of Shanghai’s key goals in the next five years. By 2025, Shanghai’s position as a Chinese yuan asset allocation center and risk management hub will be more stable to better meet the needs of domestic and foreign investors, Wu said.
At present, Shanghai has basically built an international financial center that matches China’s economic strength and the yuan’s international status. Many global financial giants are now based in the eastern Chinese city. And, China’s first foreign-owned securities brokerage and first wholly foreign-owned life insurer have also settled in Shanghai.
In addition, Shanghai has a more open channel to allocate foreign assets. Since the beginning of this year, a number of financial institutions in the city have been granted new quotas for qualified domestic institutional investors. The pilot quota for qualified domestic limited partners has also been increased significantly, Wu said.
The turnover of southbound trading under the Shanghai-Hong Kong Stock Connect mechanism reached CNY3.13 trillion (USD486.1 billion) in the first nine months of this year, gaining 160 percent from the same period last year. Cross-border investment transactions also are becoming increasingly active, Wu said.
The 2021 Shanghai Global Asset Management Forum, co-hosted by Yicai Media Group and Bank of China, opened today.
Editors: Dou Shicong, Peter Thomas