Major missions and measures in Shanghai International Financial Center construction during the 12th Five-Year period

In supporting goals of transforming Shanghai into an international financial, the plan sets forth major missions and measures from six perspectives.

Firstly, accelerating the improvement of market mechanisms, with a focus on expanding and deepening financial markets.

Missions include developing new financial market patterns based on current functions; accelerating development of basic financial products and developing financial derivatives; improving organizational systems and pricing mechanisms of the financial markets; improving the structures of market participation and expanding the scope and depth of various institution and markets.

Secondly, improving the financial system by attracting and nurturing financial institutions with an eye to global competitiveness and industrial impact

These missions include encouraging the development of headquarters and functional departments of financial institutions, and attracting foreign financial institutions to set up regional or even global headquarters in Shanghai; regulating the development of institutions in newly emerging financial businesses, and setting up management systems suitable for their development; supporting market-oriented reforms and opening-up restructuring of financial institutions, and enhancing innovation in financial institutions.

Thirdly, accelerating the construction of modern financial infrastructure, with a focus on building clearinghouses for cross-border yuan payments

The missions include building a global yuan clearing system, and strengthening infrastructure construction; supporting financial institutions in Shanghai to extend their trading systems overseas to address increased cross-border use of the yuan; supporting the efforts by Shanghai’s bankcard organizations to construct global networks and build globally recognized brands; and supporting development of clearinghouses in Shanghai.

Fourth, upgrading the economic and social service functions of financial center by accelerating financial market innovation

Missions include deepening financial reforms, and supporting and encouraging financial innovation that addresses market demand. The plan has initiated missions and tasks from 11 perspectives, including developing wealth and asset management, shipping finance, trade finance, and consumption finance.

Fifth, upgrading the international level of finance, with a focus on building a center for cross-border yuan investment and financing

Missions include promoting the opening up of financial markets and consolidating Shanghai’s position as a leader in serving China’s financial deregulation and cross-border use of the yuan; actively promoting the opening up of the financial services sector and supporting strategic cooperation between domestic and foreign financial institutions; accelerating the expansion of financial global service capabilities and accelerating development of yuan settlement services for foreign trade and investment; strengthening cross-border communication and cooperation, and developing the exchanges between Shanghai, Hong Kong, Taiwan and major financial centers in the world.

Sixth, nurturing a globally competitive environment for developing financial sectors

Missions include enhancing development of a legal and financial environment to meet China’s practical demands and global conventions; improving the tax system and piloting reforms in the financial tax system; enhancing development of a credit record system and developing Shanghai as a national credit record service center; improving the financial regulatory system, and promoting the establishment of a financial regulatory framework that boasts closeness to the market, innovation, sharing of information, and managing risks; accelerating efforts to attract professional financial talent and creating an environment where that talent can thrive.