Services

Regulations of Shanghai Municipality on Promoting the Construction of the International Financial Center

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(Adopted at the 12th Session of the Standing Committee of the 13th Shanghai Municipal People’s Congress on June 25, 2009)

Contents

Chapter I General Provisions

Chapter II Financial Market System Construction

Chapter III Regional Layout and Infrastructure Construction

Chapter IV Financial Talent Environment Construction

Chapter V Credit Environment Construction

Chapter VI Financial Innovation Environment Construction

Chapter VII Financial Risk Prevention and Legal Environment Construction

Chapter VIII Supplementary Provisions

 

Chapter I General Provisions

Article 1

With a view to implementing the national strategy for establishing Shanghai international financial center, building the financial development environment with international competitiveness and pushing forward the construction of Shanghai international financial center, these Regulations are formulated in accordance with the provisions of relevant laws and administrative regulations, and in the light of the actual circumstances of this Municipality.

Article 2

These Regulations apply to the work of promoting the construction of Shanghai international financial center in this Municipality.

Article 3

This Municipality’s work of promoting the construction of Shanghai international financial center shall, by following the unified arrangement of the State, focusing on the construction of financial market system and taking innovation and environment building as the key point, try to build Shanghai into an international financial center adaptable to China’s economic strength and the international status of RMB.

Article 4

The Municipal People’s Government shall strengthen the leadership over the work relevant to promoting the construction of Shanghai international financial center in this Municipality.

The debate coordination agency for promoting the construction of Shanghai international financial center set up in this Municipality shall, under the guidance of the State’s relevant departments, be responsible for coordinating the work relevant to promoting the construction of Shanghai international financial center, and organize relevant departments to formulate and carry out the stage-targets and measures of all kinds.

Relevant departments of the Municipal People’s Government and the district/county people’s governments shall strengthen coordination and cooperation, and specifically implement each item of work of promoting the construction of Shanghai international financial center.

Article 5

The Municipal People’s Government shall be responsible for organizing the formulation of financial industry development plan, and bring it into this Municipality’s plan of national economic and social development.

Article 6

The Municipal People’s Government shall arrange Shanghai financial development fund to be used for rewarding financial talents and financial innovation and supporting the development of the financial industry.

Article 7

This Municipality shall, according to the strategic positioning and labor division determined by the State, strengthen the mutual cooperation and support with Yangtze River Delta region and other internal central cities in the financial field, enhance this Municipality’s financial service function, and propel the financial factor market and financial agencies to provide better financial services for the economic and social development of all regions; enhance the complementary advantages sharing and strategic cooperation with Hong Kong Special Administrative Region in the financial market construction, financial products innovation, financial risks prevention, financial talents training, etc.; promote the cooperation and exchange between this Municipality’s financial agencies and those of Macao Special Administrative Region and Taiwan region.

The Municipal People’s Government shall strengthen the exchange with other key international financial cities, and encourage the financial factor market, financial agencies, financial education and research institutions, etc. to carry out international cooperation and exchanges.

 

Chapter II Financial Market System Construction

Article 8

The Municipal People’s Government and its relevant departments shall, according to the State’s requirements for forming a multi-function and multi-level international financial market system, cooperate with the state financial administration department to promote the construction of the markets of money, foreign exchange, bonds, shares, commodity futures, financial derivatives, insurance, gold, property, etc.

The Municipal People’s Government shall cooperate with the state financial administration department to optimize the structure of financial market participants, and recruit investors for agencies of all kinds, such as securities investment fund, social security fund, insurance assets, enterprise annuity, trust scheme, etc.

Article 9

The Municipal People’s Government shall formulate relevant policies to strengthen the system construction of financial agencies and support the development of financial agencies of all kinds, such as bank, bonds, insurance, trust, futures, funds, financial leasing, monetary brokerage, finance company, etc.; encourage financial agencies at home and abroad to set up headquarters and branches in this Municipality; cultivate financial agencies with international competitiveness and trade influence.

Article 10

This Municipality shall cooperate with the state financial administration department to cultivate Shanghai inter-bank offered trader’s loan interest rate and the government bond yield rate into the benchmark interest rate of the financial market.

This Municipality supports financial agencies to develop and popularize the financial products and businesses of all kinds that are conducive to the healthy development of the financial market and conform to the State’s financial regulatory requirements; supports relevant institutions to study and explore the financial derivatives based on stock index, exchange rate, interest rate, shares, bonds, and bank loans; pushes forward the development of such businesses as offshore finance, equity investment, loans for mergers and acquisitions, private bank, broker direct investment, trust and leasing, and auto finance, and encourages the orderly development of financial businesses across agencies, markets and products.

Article 11

The Municipal People’s Government and it’s relevant departments shall cooperate with the State’s relevant departments to promote the interconnection and intercommunication among various types of financial information system and market transaction system, and establish and perfect the unified, high-efficient modernized financial supporting systems of registration, trust, liquidation, settlement, etc. that match the function of Shanghai international financial center.

Article 12

This Municipality encourages the development of outsourcing financial service, supports the development of the specialized financial service industry, such as financial software development, data processing, customer service, electronic payment, etc., and encourages the set-up of the specialized financial service agencies.

Article 13

This Municipality supports the development of the intermediary service agencies related to finance, such as credit rating, asset evaluation, financing guarantee, investment consultation, accounting and auditing, legal service, etc., standardizes the professional conducts of the intermediary service agencies, strengthens the trade self-discipline, and improves the professional level and service capacity of the intermediary service agencies.

The Municipal People’s Government and its relevant departments shall cooperate with relevant state departments to build the financial news and information service platform and the global financial information service market.

Article 14

This Municipality supports financial agencies to strengthen the professional skills and ethics education for their employees, cultivate the professional ethics of honesty and trustworthiness, service first, and strictness and standardization, and improves the financial service level.

Article 15

The Municipal People’s Government and its relevant departments shall support the financial trade association to give play to the role of standardization, coordination, service, self-discipline, etc.

 

Chapter III Regional Layout and Infrastructure Construction

Article 16

The Municipal People’s Government shall, according to the respective development advantages of Lu Jiazui financial city, Waitan (the Bund) financial convergence belt, Zhangjiang financial information service industry base, Yangshan free trade port area as well as other regions, perfect the spatial layout of the financial industry in this Municipality.

Relevant departments of the Municipal People’s Government shall organize the formulation of the layout planning of the financial convergence zones, and bring it into the corresponding city planning after it is reported and approved according to the State’s provided procedures.

Article 17

The municipal planning and land resources administrative department and the district/county people’s governments shall, according to this Municipality’s urban master planning and the overall planning of land utilization, and with consideration to the requirements of the development planning of the financial industry and the spatial layout of the financial convergence zones, guarantee the construction-use land for the financial convergence zones while formulating the detailed regulatory plan and the annual plan of land utilization.

The municipal housing administration department and the district/county people’s governments shall take appropriate measures to facilitate the settlement of the housing for business operation and office work for financial agencies.

Article 18

Relevant departments of the municipal, district/county people’s government, shall perfect the construction of the supporting facilities for the municipal public infrastructures within the financial convergence zones, and improve the service environment for office work, commerce, etc.

This Municipality’s relevant enterprises of electric power, communication, transportation, etc. shall do a good job of the work of service guarantee for electric power, communication, transportation, etc. within the financial convergence zones.

 

Chapter IV Financial Talent Environment Construction

Article 19

The municipal human resources administrative department shall, jointly with the municipal financial service department, formulate the convergence, development planning and training, and introduction plan for financial talents; under the guidance of the State’s relevant departments, establish and perfect the market-oriented financial talents utilization appraisal system adaptable to the construction of the international financial center, and formulate by classification the policies relevant to financial talents.

Article 20

The municipal financial service department shall, jointly with relevant municipal departments, establish the financial education information resource pool in this Municipality to promote the education resources sharing.

The municipal education administrative department and the municipal financial service department shall, jointly with relevant departments, set up the financial vocational education and training base to cultivate financial professionals and financial management talents of all kinds.

The municipal human resources administrative department shall, jointly with the municipal financial service department and according to the State’s relevant provisions, introduce the internationally recognized accreditation agency for examination on financial professional proficiency to carry out relevant accreditation business.

Article 21

This Municipality encourages financial agencies and relevant units to introduce through the market mechanism the badly-needed high-level financial talents of all kinds at home and from abroad.

Relevant departments of the Municipal People’s Government and the district/county people’s governments shall provide conveniences for the introduced badly-needed high-level financial talents in terms of household registration and residence permit application, housing, medical insurance, children schooling, etc. For the introduced overseas financial talents, the exit-entry administrative department shall simplify the exit/entry formalities according to the State’s relevant provisions.

Article 22

The Municipal People’s Government shall formulate financial talents award measures to reward the various financial talents who make contribution to the construction of Shanghai international financial center.

 

Chapter V Credit Environment Construction

Article 23

The municipal economic informatization administrative department shall, jointly with relevant departments such as the municipal financial service department, etc., cooperate with the state financial administrative department to establish a unified credit standing information collecting platform of the financial industry, enlarge the coverage and data volume of credit standing information collection, and improve credit information consultation services.

The municipal economic informatization administrative department shall, jointly with relevant departments such as the municipal financial service department, etc., cooperate with the state financial administration department to perfect the practicing credit record of the senior management personnel in the financial industry.

Article 24

The administrative departments of industry and commerce, taxation, public security, quality supervision, etc. and the judicial organ in this Municipality shall establish a credit information sharing mechanism, and provide according to law relevant credit information consultation services.

Article 25

This Municipality encourages credit service agencies to develop credit products, and supports their legal business operations.

Credit service agencies shall follow the principle of independency, objectiveness, justice and cautiousness in collecting and processing credit information and providing credit products.

Credit service agencies shall bear the obligation of keeping confidentiality for the State secrets, commercial secrets and personal privacy acquired in the process of credit standing information collection, not prejudice the legitimate rights and interests of the enterprises and individual persons whose credit standing information are collected, and nor hamper public interests and public security.

Article 26

This Municipality supports financial agencies to use credit products in financial activities, and promote the use of credit products in enterprise financing, supporting business start-up as well as in the business of pawning or pledging, financial leasing, etc.

 

Chapter VI Financial Innovation Environment Construction

Article 27

This Municipality encourages financial factor markets and financial agencies to make innovations on financial products, technology, service, management and organization form, etc.

Article 28

With the support of the state financial administrative department, the Municipal People’s Government and its relevant departments shall create conditions for financial factor markets and financial agencies to take the lead in implementing and popularizing the achievements in various financial innovations in this Municipality.

Article 29

Relevant departments of the Municipal People’s Government shall perfect the financial innovation protection mechanism, and enhance the protection of the intellectual property rights for the achievements in financial innovations, such as trademark right, patent right, copyright, commercial secrets, etc.

Article 30

The Municipal People’s Government shall formulate the reward measures for financial innovations, and reward excellent financial innovation projects.

 

Chapter VII Financial Risk Prevention and Legal Environment Construction

Article 31

The Municipal People’s Government shall strengthen the coordination with the state financial administration department, cooperate with the state financial administrative department to establish and perfect the financial supervision and coordination mechanism in this Municipality, perform the supervisory function according to law, perfect the supervisory system, improve the mode of supervision, and enhance the trans-industry and trans-market supervision and coordination.

Article 32

The Municipal People’s Government shall, under the guidance of the state financial administrative department, perfect the financial stabilization and coordination mechanism, and improve the predetermined emergency scheme and the emergency handling mechanism for financial contingencies.

Relevant departments of the Municipal People’s Government shall cooperate with the state financial administrative department to establish and perfect the financial risk monitoring information system and evaluation mechanism, support relevant agencies to conduct research in the fields of financial risk forecast, evaluation, prevention, etc., enhance the early warning capacity to prevent financial risks, and maintain financial stability and security.

Relevant departments of the Municipal People’s Government shall support the development and application of financial risk management means and technology, and offer necessary guidance and help for financial agencies to maintain the security of the important financial information system.

Article 33

This Municipality’s administrative organs and judicial authorities at all levels shall cooperate with the state financial administrative department to do a good job of combating illegal financial activities, such as money laundering, money counterfeiting, etc.

This Municipality’s administrative organs and judicial authorities at all level shall, according to law, enhance the prevention of and crack down on financial crimes.

Article 34

This Municipality’s administrative organs at all levels shall optimize the administrative examination and approval procedures, simplify the administrative examination and approval links, and provide open, transparent, convenient and efficient administrative services for financial factor markets, financial agencies, relevant intermediary services agencies, relevant trade associations, etc.

This Municipality’s administrative organs at all levels shall safeguard the legitimate rights and interests of financial agencies, and not interfere with financial agencies’ legal self-operation.

Article 35

People’s courts at all levels in this Municipality shall perfect the hearing mechanism for financial litigations, and enhance the enforcement strength for financial cases.

Article 36

This Municipality’s financial arbitration agencies shall perfect financial arbitration rules according to laws, rules, regulations, and international practices, and improve the professional level and degree of the internationalization of financial arbitration.

Article 37

This Municipality supports the development of the financial legal service industry, and encourages legal service agencies to expand the domain of financial legal services to offer financial legal services to financial agencies and relevant enterprises and individual persons.

Article 38

Relevant departments and financial agencies in this Municipality shall publicize and popularize financial knowledge and carry out education on the awareness of preventing financial risks through media and such other means.

 

Chapter VIII Supplementary Provisions

Article 39

These Regulations shall be effective as of August 1, 2009.