The Situation of Current Regulatory System in Shanghai
Shanghai was once the financial capital of the Far East Asia. It has its own regulatory culture and historical traditions, which provide a firm foundation for building a strong regulatory system. That system is now developing fast, supported by central government policies and inputs from all stakeholders.
As part of the efforts to implement national development strategy and enforce national financial law, Shanghai Municipality has developed its own financial legislation and a series of regulations and measures. These have improved local regulation and local services for finance, accelerated the concentration of financial resources, and driven the shift in Shanghai’s financial services and industrial mix. They have been a very positive factor in speeding the development of an international financial center.
Shanghai has been the site of important reforms and innovations in the financial judicial institutions, establishing financial investigative teams, financial prosecutors and financial courts. Members of the judiciary are constantly updating their knowledge of financial law to meet the challenge that building a financial center poses to the law. Over the last few years, Shanghai has accumulated experience in stopping new financial crimes and resolving new financial disputes. Such experience will be very important in guiding and guaranteeing the financial center development.
Shanghai’s regulatory system is well developed with strong regulatory bodies. The national regulator coordinates closely with local government on regulation of market participants, orderly market operation, and prevention of financial risk. The self-regulation exercised by Shanghai financial industry association and internal control of financial institutions have made progress, which is having a very positive effect. And the Shanghai credit system has made great strides, which puts the supply of credit in the financial center on a sound footing.