Work in progress for Shanghai hub
Shanghai needs to promote internationalization of the yuan and develop a financial market and institutions with global influence to enhance the city’s status as an international financial hub, the Shanghai headquarters of the People’s Bank of China said in a report yesterday.
Although Shanghai has achieved much for the goal of becoming an international financial center, it still trails New York and London which are unchallenged in global financial operations, said the third edition of the central bank’s Development Report on International Financial Centers.
The report tracks the latest trend in international financial centers.
Shanghai has been urged to deepen financial and economic reforms to develop sound, stable and transparent market regulations, and build a rule-of-law environment that is just, open and fair, the report advised.
The city should also improve its services and its supporting infrastructure to meet the standard of an international financial center, the report added.
“Shanghai has basically confirmed its status as a domestic financial center with the financial market system as its core,” the central bank said in the report.
“In future, Shanghai should make more efforts in promoting international aspects,” especially in yuan internationalization, global influence of the financial market and developing globally dominant financial institutions.
The opening of Shanghai Insurance Exchange, Shanghai Commercial Paper Exchange, and China Trust Registration Co were listed among major innovations and indicated the wider opening of the financial market, the report said.
Also, more international financial institutions have set up operations in Shanghai including the Global Association of Central Counterparties, China Development Bank, and the National Internet Finance Association of China.
The report said the PBOC will support Shanghai’s endeavor in boosting financial innovation.