25 Aug 2021
Shanghai is looking to upgrade its role as an international finance hub by 2025 and further bolster its position in serving the development of China’s economy.
The government has unveiled a new plan to make Shanghai a global financial centre during the 14th five-year plan, between 2021 and 2025.
According to the city’s vice mayor, Wu Qing, by 2020 Shanghai had established itself as a global financial hub in line with China’s economic strength and the Yuan’s international status.
By the end of last year, the total capitalisation of shares on the Shanghai Stock Exchange ranked third in the world. In addition, initial public offerings in 2020 saw funds raised and overall turnover rank first and fifth on a global scale.
Shanghai's financial markets’ turnover last year stood at 2.27 quadrillion yuan (US$416.9 trillion), a 55.5% rise from 2015, whilst direct financing soared 91.3% from 2015 to 17.6 trillion yuan.
Moreover, the city is planning to strengthen its role in Yuan financial asset allocation and risk management and boost its global resource allocation function, to enable Shanghai to be an international financial centre of global significance by 2035.
There are six specific objectives including increasing the development of a global asset management centre and a financial technology centre; consolidating the position of an international green financial hub and a hub for the cross-border use of the Yuan; as well as two ‘highlands’ for international financial talent and the financial business environment.
Furthermore, total trading volume in Shanghai’s financial markets is set to increase to around 2.8 quadrillion yuan in 2025, whilst direct financing is forecast to reach around 26 trillion yuan, over 85% of the national total.
Shanghai is also committed to digital transformation within the financial industry, bolstering green finance and the optimisation of the financial business environment.