Special article for Shanghai Free Trade Zone （FTZ）
Topics: Inside Shanghai FTZ
Original title：Lujiazui’s Money Chamberlain: High quality openings boost investment confidence
Source: China News Service
Written by: Li Shuzhi, Yu Mei
Following the development and opening of the new area of Pudong (east of Shanghai), Lujiazui has been transformed from a shanty town of puddles into a financial city with flows of wealth. Riding on the east wind of the China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as the Shanghai Free Trade Zone), China’s financial business card shines even brighter.
As the core carrying area for the construction of Shanghai’s international financial center, Lujiazui is piggybacking on the success of free trade to accelerate the construction of a world-class financial city. Foreign “Money Chamberlain”（money manager） who favour RMB assets are flocking here.
“The Shanghai Free Trade Zone has launched a number of innovative measures to promote financial transparency, which has greatly increased our interest and confidence in high-level investments in Shanghai.” Lai Changgeng, CEO and President of BNP Paribas (China) Co., Ltd., told reporters in an interview. “China is one of the key development areas for BNP Paribas, and Shanghai is an important strategic hub for BNP Paribas’ development in China.”
Just in September this year, Fabanong Bank Wealth Management Co., Ltd, the fifth Sino-foreign joint venture financial management company in the Shanghai Free Trade Zone, officially opened. According to Lai Changgeng, BNP Paribas has submitted materials to the China Securities Regulatory Commission to apply for the establishment of a security company, and is also applying for a local securities investment fund custody license.
“The first concern of financial transparency is market access. At present, licenses for foreign banks, foreign securities, foreign insurance, foreign funds and other foreign financial institutions are constantly being issued, especially in Shanghai, where the number of foreign financial institutions continues to increase. ” said Wang Yunfeng, General Manager, President and Chief Executive Officer of HSBC Bank (China) Co., Ltd.
Financially benefiting from the opening of the Shanghai Free Trade Zone, the international asset management giant Schroders Investment Group has once again increased its presence in China. This year, Schroders Fund Management (China) Co., Ltd. was approved by the China Securities Regulatory Commission to be established, becoming the fourth entirely foreign-owned fund management company newly established in China to carry out public fund management business.
“Schroder Investment Group established its first mainland China representative office in Shanghai in 1994, and jointly established Bank of Communications Schroder Fund in 2005.” Zhang Lan, general manager of Schroder Fund Management (China) Co., Ltd., says. She goes on in an interview: “In the past 30 years, we have witnessed the development of Shanghai and actively participated in the reform and opening up of China’s financial market.”
“Shanghai has become an area with the highest concentration of foreign financial institutions.” Zhang Lan says that the gathering of foreign financial institutions is inseparable from the high-quality business environment of the Shanghai Free Trade Zone. “With the implementation of a series of opening-up measures such as Shanghai-Hong Kong Stock Connect and Bond Connect, we are very optimistic about the Chinese market and will continue to bring various advantageous resources to Shanghai to explore new development models for asset management companies in China.”
In addition to foreign-owned public funds, along with financial openings, the country’s first foreign-owned securities company and the first foreign-owned insurance holding company have also settled in the Shanghai Free Trade Zone.
Relying on the advantages of national strategies such as the Shanghai Free Trade Zone and the Pudong Leading District, Lujiazui continues to deepen its exploration of institutional innovation and leads the industry to rise in level. Official data shows that internationally renowned asset management institutions from around the world have established 120 foreign asset management companies of various types here; 9 of the top ten asset management institutions in the world in terms of asset management scale have settled in Lujiazui Financial City.
“The duck knows first when the river becomes warm in spring, and a Lujiazui prophet is financial openness.” As the main host of financial openings in the Shanghai Free Trade Zone, Liang Qing, deputy director of the Lujiazui Administration Bureau of the Shanghai Free Trade Zone Management Committee, believes that their work is for the purpose of setting up their service, “The next step is to sow the seeds.” Liang Qing said during the business development process of enterprises, Lujiazui Area will take the initiative to understand the demands of enterprises and transform them into “new driving forces” for further high quality openings.(Enditem)
