The China Banking and Insurance Regulatory Commission, together with the Shanghai Municipal People's Government, has jointly issued an action plan to support the construction of Shanghai as an international financial centre, setting out 27 measures across institution clustering, priority areas of finance, institutional opening-up, supervisory capability and supporting infrastructure. Measures include encouraging banking and insurance institutions to further concentrate in Shanghai and for commercial bank head offices to increase support through dedicated set-ups and greater delegation of authority to Shanghai-based entities. The plan also promotes the “five priority areas” of finance (technology, green, inclusive, pension and digital), upgrades cross-border financial services and international operating capability, and backs initiatives such as the Shanghai international reinsurance centre, shipping insurance and research into offshore finance innovation, including exploring cross-border syndicated lending and other non-resident loan business in the Shanghai Free Trade Zone. Supervisory proposals include innovation pilots constrained by permitted business, quotas and participating institutions with defined risk circuit-breakers, and exploration of a due-diligence exemption mechanism for such pilots, alongside stronger central-local coordination on financial risk prevention and resolution. Supporting measures cover strengthening financial consumer protection capacity via the Shanghai financial regulator, improving regulatory technology, and establishing a data sub-centre of the national regulator in Shanghai when conditions permit, as well as developing an asset-management services platform and building financial talent.

Original source View in tracker