Chinese Communist Party Hails Shanghai’s Emergence as International Financial Centre

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The Chinese Communist Party (CCP) has hailed the ongoing rise of Shanghai as an international centre for the global financial sector at an official event.

On 11 October, the CCP party committee for Shanghai convened a press event on the theme of “Accomplishments and Outlook for the Development of Shanghai as an International Financial Centre in a New Era” (新时代上海国际金融中心建设的成就与展望).

According to figures from the event, the value added of the Shanghai financial sector increased from 11% of GDP to 18% of GDP during the period from 2012 to 2021, while in the first half of 2022 it accounted for a 21.3% share.

Financial market transactions increased from 528 trillion yuan to 2511 trillion yuan over the same period, for a near four-fold increase.

The market capitalisation of the Shanghai Stock Exchange increased nearly two fold over the past decade to reach 49 trillion yuan, rising from seventh to third place internationally. According to figures from the event, the Shanghai bond market has provided nearly 34 trillion yuan in financing, making it the world’s largest, while the Shanghai Futures Exchange has seen 107 trillion yuan in transactions since the start of the year, which is 3.2 times the figure for the same period in 2012.

The number of licensed financial institutions in China increased from 1227 at the end of 2012 to 1719 at the end of June this year, of which around 30% are foreign invested.

“Over the past ten years, the Shanghai financial market situation has continually improved, and its core role as financial centre has continually strengthened,” said Xin Yadong (信亚东), secretary of the Shanghai municipal financial work party committee.

“Financial markets and financial infrastructure are continually improving, and with the strong support of national regulators, Shanghai has established the Shanghai Commercial Paper Exchange, the Shanghai Insurance Exchange, and multiple other key financial markets and financial infrastructure facilities.”

CCP source said that in future Shanghai would “firmly and unwaveringly expand external opening of finance, strengthen global resource allocation capability, support the creation of a global renminbi financial asset allocation centre and risk management centre in Shanghai, and lift global pricing authority and influence of the Shanghai financial market.”