The Central Financial Commission issued the Opinions on Supporting the Accelerated Construction of Shanghai as an International Financial Center

In order to implement the deployment requirements of the Third Plenary Session of the 20th CPC Central Committee to "accelerate the construction of Shanghai as an international financial center" and the Central Financial Work Conference to "enhance the competitiveness and influence of Shanghai as an international financial center," the Central Financial Commission recently issued the Opinions on Supporting the Accelerated Construction of Shanghai as an International Financial Center (hereinafter referred to as the Opinions).

The Opinions point out that, for the current and future periods, the accelerated construction of Shanghai as an international financial center should be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, always adhering to the "eight principles," following the path of financial development with Chinese characteristics, firmly grasping the requirements of enhancing competitiveness and influence, taking the deepening of financial system reform as the driving force, improving financial internationalization as the breakthrough, and focusing on building a modern financial system with Chinese characteristics. Efforts should be made to solidly accomplish the "five major tasks" in providing financial services to the real economy, strengthen the coordinated and synergistic development of the "five centers," enhance financial supervision and risk prevention and control, and cultivate a financial culture with Chinese characteristics, so as to make greater contributions to creating a new situation in financial work and advancing Chinese-style modernization.

The Opinions clarify that after five to ten years of construction, the energy level of Shanghai as an international financial center will be comprehensively enhanced, the adaptability, competitiveness, and inclusiveness of the modern financial system will be significantly improved, the function of Shanghai as a hub for financial opening-up will be significantly strengthened, and the status of Shanghai as a global asset allocation center and risk management center for RMB assets will be significantly enhanced, basically building Shanghai into an international financial center that matches China's comprehensive national strength and international influence.

The main measures include:

First, deepen the construction of financial markets. Promote the high-quality development of the multi-tiered equity market, strengthen the positioning and inclusiveness of the Science and Technology Innovation Board as a platform for "hard-core technology," support Shanghai in taking the lead in building a demonstration zone for the high-quality development of publicly listed firms, and support enterprises in growing stronger through mergers and acquisitions. Deepen the construction of a multi-tiered bond market system and steadily develop asset-backed securities. Support the Shanghai Futures Exchange in accelerating its construction into a world-class exchange and continuously promote the development of markets such as currency and foreign exchange. Enhance the pricing influence of Shanghai's financial markets.

Second, enhance the energy level of financial institutions. Gather various legal entities, branches, and licensed specialized institutions established by large financial institutions at home and abroad in accordance with the law. Cultivate and attract powerful and well-regulated financial holding companies. Promote the establishment of more international financial organizations in Shanghai. Enrich the main bodies of the asset management industry. Enhance the global competitiveness of financial institutions and deepen the reform of state-owned financial enterprises in Shanghai.

Third, improve financial infrastructure. Strengthen the service and support functions of financial infrastructure and build an internationally leading financial infrastructure system. We will strengthen the construction of the cross-border RMB payment and clearing system. We will study and improve the trust registration and circulation system. We will enhance the infrastructure of the gold market and explore supporting the establishment of export supervision warehouses for the international board of the Shanghai Gold Exchange.

Fourth, we will expand high-level, two-way financial opening-up. We will steadily expand institutional opening-up in the financial sector and fully align with international high-standard economic and trade rules. We will facilitate cross-border trade and investment, providing comprehensive financial services for enterprises "going global." We will deepen and expand investment and financing cooperation under the Belt and Road Initiative. We will deepen innovation in shipping insurance and reinsurance businesses. We will build an offshore financial system that matches Shanghai's status as an international financial center.

Fifth, we will improve the quality and efficiency of serving the real economy. We will accelerate the construction of the Shanghai Science and Technology Innovation Financial Reform Pilot Zone. We will promote the establishment of green financial standards that align with international practices, enrich green financial products, and carry out international cooperation in green finance. We will strengthen the construction of a unified financing credit service platform and support financial institutions in using technologies such as blockchain to develop supply chain finance. We will serve the development of a multi-tiered and multi-pillar pension insurance system. We will build a high-quality global financial technology center. We will promote financial support for the higher-quality integrated development of the Yangtze River Delta.

Sixth, we will effectively safeguard financial security under conditions of opening-up. We will use technologies such as blockchain, big data, and artificial intelligence to strengthen forward-looking research and timely assessment of risks. We will prevent and resolve cross-border financial risks, establishing and improving a monitoring, early warning, macro-prudential assessment, and coordinated response system for cross-border capital flows that is adapted to high-level opening-up. We will strengthen coordination between central and local regulatory authorities. We will strengthen the legal safeguards for the construction of Shanghai as an international financial center.

To ensure the implementation of the "Opinions," the Central Financial Commission Office will jointly lead with the Shanghai Municipal Committee of the Communist Party of China and the Shanghai Municipal Government, in coordination with the People's Bank of China, the National Financial Regulatory Administration, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments, to establish a coordination and promotion mechanism for the construction of Shanghai as an international financial center. This mechanism will study and promote the resolution of major issues related to the construction of Shanghai as an international financial center, ensuring that all decisions and deployments of the Party Central Committee regarding the construction of Shanghai as an international financial center are fully implemented.