China Launching 30 Financial Reforms in Shanghai

From February 14. iFeng: 一大波金融改革开放试点将在上海开展!五部门30条措施力挺
On February 14, the Central Bank, the China Banking Regulatory Commission, the China Securities Regulatory Commission, the Foreign Exchange Bureau, and the Shanghai Municipal Government issued the Opinions on Further Accelerating the Construction of the Shanghai International Financial Center and Financial Support for the Integrated Development of the Yangtze River Delta (Yinfa [2020] No. 46) ( Hereinafter referred to as the "Opinion").

The Opinions put forward 30 specific measures from the aspects of actively promoting the financial pilot in the Lingang New Area, accelerating the opening up of Shanghai's financial industry at a higher level, and financially supporting the integrated development of the Yangtze River Delta. These 30 measures have covered many experimental aspects of financial reform and financial opening up. The main points of the surging news are as follows:

1. Pilot qualified financial management subsidiaries of commercial banks, set up professional subsidiaries in Shanghai in accordance with the principle of commercial voluntariness , and invest in the equity of key construction projects in the Lingang New Area and the Yangtze River Delta and the equity of unlisted enterprises.

2. Support qualified commercial banks to set up financial asset investment companies in Shanghai in accordance with the principle of commercial voluntariness. Pilot qualified financial asset investment companies to set up professional investment subsidiaries in Shanghai to participate in the construction of Lingang New Area and the adjustment of the economic structure of the Yangtze River Delta. , Industrial optimization and upgrading and coordinated development related to corporate restructuring, equity investment, direct investment and other businesses.

3. Support financial institutions and large-scale technology companies to set up fintech companies in the region according to law, actively and steadily explore the application of new technologies such as artificial intelligence, big data, cloud computing, and blockchain in the financial field, and attach importance to the cultivation of fintech talents.

4. In the Lingang New Area, explore the abolition of the special account for foreign direct investment in RMB capital, and explore the pilot project of a cross-border pool of local and foreign currency integration . Eligible multinational enterprise groups are supported to carry out centralized adjustment and collection of domestic and foreign currency funds between domestic and foreign members, convert funds according to actual needs, and implement two-way macro-prudential management of cross-border capital flows. Explore the transformation and upgrading of foreign exchange management.

5. Pilot the cross-border transfer of domestic trade financing assets in the Lingang New Area . Research and promote the establishment of a platform relying on the Shanghai Stock Exchange and related digital technology research and development support institutions to handle cross-border transfer of trade financing assets and promote the development of cross-border trade financing business in RMB.

6. Pilot foreign investment institutions and large banks set up joint ventures in Shanghai to support commercial banks and bank wealth management subsidiaries in selecting qualified asset management institutions registered in Shanghai as financial investment cooperation institutions.

7. Support foreign-funded institutions to establish or hold securities operation institutions and fund management companies to land in Shanghai. Promoting the limit on the proportion of foreign investment in life insurance from 51% to 100% took the lead in Shanghai.

8. For foreign financial institutions to invest in Shanghai to set up and participate in a pension management company application, mature one, approved one. Encourage insurance asset management companies to set up professional asset management subsidiaries in Shanghai. Pilot insurance asset management companies will participate in overseas asset management institutions and other wealth management companies established in Shanghai . Exploring insurance funds to invest in gold, oil and other commodities on a trial basis through Shanghai-related exchanges.

9. Support qualified non-financial enterprise groups to establish financial holding companies in Shanghai . Multinational companies are encouraged to set up headquarters-type institutions such as global or regional fund management centers in Shanghai. The fund management center established by a multinational company in Shanghai can enter the interbank foreign exchange market for transactions upon approval. The financial lease parent company and its subsidiaries registered in the Shanghai Pilot Free Trade Zone are allowed to share the amount of foreign debt.

10. Support Shanghai in accelerating the construction of the rule of law in finance, accelerating the establishment of a system of financial rules that are in line with international standards, increasing penalties for illegal financial activities, and encouraging trials of financial technology innovation.

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