June 26, 2018

Shanghai FTZ set to further open up its financial service industries

Shanghai Free Trade Zone recently issued new guidelines on the expansion and opening-up of the zone’s financial services to promote the construction of its core functions.

The guidelines cover areas like attraction of foreign investment, settlement of foreign-funded financial institutes, financial reforms and innovations, establishment of financial service technology and innovation center, aggregation of high-end financial talents, and development of a legal system that is in conformity with the international rules.

Also, the guidelines reflect the FTZ’s function as a testing field for the country’s measures to open up its financial service industries and accelerate the city’s process of building itself into an international financial center.

The FTZ will carry out new policies to aggregate foreign financial institutes and further open up its banking industry, security industry, and insurance industry. The zone will also support the foreign banks to expand their operations; allow the establishment of foreign holdings security companies, capital management companies, and futures companies; support foreign capital management companies to set up their regional headquarters in the zone; and allow foreign institutes to set up financial leasing companies.

The FTZ will establish a new mechanism for attract foreign financial institutions to settle in the zone, reduce the negative list for foreign investment to the minimum, and promote the opening-up of the zone’s financial services. The zone will set up professional teams to serve the foreign financial institutes and provide them good service throughout their operation.

In the meantime, the zone will establish cooperation mechanism with each country’s financial institutes stationed in Shanghai and international economic organizations, establishing the global business attraction network.

The aggregation of high-level professionals is also a prerequisite to the opening-up of the financial sector. The zone will make it more convenient for the foreign professionals to apply for residence permits or visas at the city’s ports; build cultural facilities that meet the foreign personnel’ needs; and make it more convenient their children to attend to the local schools.