Shanghai intends to step up its role as a hub for international usage of the renminbi during the course of the 14th Five Year Plan that runs from 2021 – 2025.
The Shanghai municipal government issued the “Free Trade Zone Lujiazui Section Development 14th Five Year Plan” (自贸试验区陆家嘴片区发展“十四五”规划) on 12 August.
The Plan states that during the 14th Five Year Plan the financial district of Lujiazui will “accelerate the development of a global renminbi financial assets allocation centre, world-class commanding heights for the clustering of headquarter functions, and an international first-class business demonstration environment.”
“The Lujiazui financial district will become the the core of Shanghai as an international financial centre, and an international, first-class financial centre that corresponds to China’s international status,” said the Plan.
In order to achieve the goal of transforming Lujiazui into a “global renminbi financial assets allocation centre,” the Plan sets the goals of “gathering together over 10,000 financial institutions of various types and over 1000 licensed financial institutions in the district by 2025,” as well as the doubling the number of regional headquarters for multinational firms in Lujiazui to 200.
The Plan also calls for “driving urban digital transformation, further expanding opening of the economy and risk stress testing, and accelerating the creation of a special economic functional zone that posses international market influence and competitiveness.”