China issues guideline to further Shanghai, Yangtze River Delta development
File photo shows a night view of Shanghai, East China. [Photo by Cai Yang/Xinhua]
China on Friday issued a guideline to further build Shanghai into an international financial center and boost the integrated development of the Yangtze River Delta.
The guideline, consisting of 30 measures, was jointly issued by the People's Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange and the Shanghai municipal government.
The guideline will also facilitate the country's high-quality development and the building of a modern economic system, the country's central bank said in a statement on its website.
The central bank said the COVID-19 epidemic will only have temporary impacts on China's economy.
"Deepening supply-side structural reform in the financial sector and opening the sector wider are China's long-term policies, which will not be undermined by the epidemic," the central bank said.
"The pace of reform will only get faster and faster, and the door of China's opening up will only open wider and wider. Risk management ability will also become stronger and stronger," the central bank said.
Efforts will be made to support the growth of key industries of international competitiveness in the Lingang area of the Shanghai pilot free trade zone, according to the guideline.
Qualified commercial banks will be allowed to set up wealth management subsidiaries in Shanghai to invest in equities of key programs in Lingang and the Yangtze River Delta, the guideline said.
Incentives will be given to financial institutions and large technology enterprises in establishing fintech companies in the Lingang area to explore the application of new technologies such as artificial intelligence, big data, cloud computing and blockchain in the financial sector.
The guideline also granted foreign investors wider access to the financial sector. Selected foreign institutions will be allowed to partner with large commercial banks to set up wealth management joint ventures in Shanghai.
The country will pilot fully foreign-owned life insurance firms in Shanghai and support the establishment of foreign-controlled brokerages and fund management firms in the city.
To promote Shanghai as the center for RMB asset allocation and risk management, the country will further open its bond market, facilitate the registration process for overseas investors, and develop foreign exchange derivatives including the interest rate options for yuan, the guideline said.
The country will also encourage more cooperation among financial institutions across the Yangtze River Delta region, increase the use of mobile payment services and seek to establish a unified, market-oriented credit system in the region, the guideline said.