May 17, 2018

New policies propel fintech industry in Lujiazui

Lujiazui recently released a new series of policies to support its emerging fintech industry in an attempt to forge a top world fintech ecosystem in the region.

The policies will address the needs of fintech enterprises in nine ways, such as application scenarios, incubation investment, technological R&D, risk prevention, fiscal support and international promotion.

The move comes after the first nine policies issued in late 2014 that helped Lujiazui cultivate and draw a number of outstanding fintech enterprises to settle down in the area.

Home to 800 licensed financial institutions, 12 factor markets, 80 percent of China's foreign-funded banks, one third of the country's private equity funds, over 5,000 emerging financial institutions and more than 3,000 supporting service providers, Lujiazui is now one of China's largest financial hubs with a complete financial industrial chain.

That environment provides a perfect business climate for fintech industry growth, according to a local official, adding that the financial institutions in Lujiazui can provide abundant application scenarios for fintech while the agencies in the area offer businesses in the sector quality services in terms of law, auditing and consultation.

Lujiazui authorities have found out that fintech enterprises require supporting services in all stages of development and most of them are either provided by market entities or by a platform established by the government.

With the release of the new policies, local authorities will collaborate with enterprises, financial institutions and research centers in setting up multiple such platforms to provide quality resources and specialized services for the full-life-circle development of the fintech industry.

"Building a fintech ecosystem is of great significance to Lujiazui," said Ren Kaifeng, an official with the Lujiazui administration bureau of China (Shanghai) Pilot Free Trade Zone, noting that fintech is an essential element for Lujiazui as part of Shanghai's emergence as an international financial center.

Meanwhile, the tech achievements in the financial industry may also be applied to other service sectors and to help Shanghai set up its technological innovation center, he added.