Shanghai should advance institutional opening-up, say experts

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Shanghai should advance institutional opening-up, say experts

The financial center in Shanghai, Lujiazui, is a perfect backdrop to the Bund area. WANG GANG Shanghai should advance institutional opening-up in the capital market to better shoulder its responsibility as an international financial center, officials and industry experts said at an industry event on Saturday.

At the Shanghai International Financial Center Development Forum 2022, Tu Guangshao, executive director of the Shanghai Advanced Institute of Finance at Shanghai Jiao Tong University, said continued efforts should be made to strengthen Shanghai's function as an international financial center.

Tu stressed the importance of infrastructure construction as it can facilitate market and institutional opening-up. The institutional opening-up may be more challenging, but it is more fundamental and of long-term significance to Shanghai to better fulfill its responsibilities, he said.

Sun Hui, deputy director of the Shanghai head office of People's Bank of China, said at the forum that Shanghai should take the lead in terms of financial reform and opening-up, especially at the institutional level.

There can be more innovative products regarding renminbi transactions, investment and risk hedging in the city so that cross-border financial products and services can be provided with more convenience and efficiency.

The National People's Congress, the country's top legislature, granted the legislative power to grant Pudong New Area, the eastern part of Shanghai, should better use its legislative power to connect financial management to the judicial and legislative systems, Sun said.

Liu Ti, the deputy general manager of the Shanghai Stock ExchangeShanghai Stock Exchange, told the same forum that institutional opening-up in the capital market can facilitate domestic and international circulation. It is with opening up at the institutional level that the ratio of direct financing can be elevated, the financial sector can better serve the real economy and people's need to preserve and increase their wealth can be fulfilled.

In a video speech given by the forum, Wu Qing, Shanghai's executive vice-mayor, said financial transactions in Shanghai during the first 10 months of the year were valued at 2,416 trillion yuan $335 trillion, up 20 percent year-on-year.

The city is now a preferred destination for foreign financial institutions, who account for over 30 percent of all financial institutions in the city. The ongoing financial opening-up in Shanghai is one of the indicators that it is an indicator of the ongoing financial opening-up in the city.

In a video speech given by the forum, Shang Fulin, chairman of the Economic Committee of the National Committee on the Chinese People's Political Consultative Conference, said that Shanghai's strength in financial opening-up should be strengthened to attract more domestic and international providers of financial services.

More first attempts in the financial sector should be made in the China Shanghai Pilot Free Trade Zone, especially the Lin-gang Special Area, to make Shanghai a global asset management center so that both Chinese and foreign investors can have better asset allocation and risk management demand, according to Shang.