Shanghai Aims to Build Global Asset Management Hub

​[Photo/VCG]

Shanghai has released a new set of guidelines to accelerate its development as a global asset management center, with assets under management in the city projected to reach 55 trillion yuan ($8.11 trillion) by 2030, accounting for one-third of the national total.

The guidelines, which took effect on June 1, outline measures in financial market development, institutional capacity building, product and service innovation, opening-up, and industry ecosystem support.

Stronger financial markets

Shanghai will expand the supply of financial products and enhance risk management tools for the futures and derivatives market.

The city will support listings, mergers and acquisitions involving technology-oriented companies, broaden bond offerings, and encourage eligible asset management institutions to participate in real estate investment trust businesses.

It will also develop additional futures and derivatives products in areas such as energy, shipping, and computing power, while strengthening the influence of "Shanghai prices" and encouraging overseas investors to adopt domestic indices and valuation benchmarks.

More capable institutions

Shanghai will attract and cultivate leading institutions in specialized areas of asset management, support institutions from countries and regions involved in the Belt and Road Initiative in establishing asset management operations and conducting investment activities in the city, and encourage foreign asset managers to pursue distinctive development strategies.

The city will also strengthen support from professional service providers, including legal services, accounting, auditing, credit rating, and asset appraisal firms, to better serve overseas asset managers entering the Chinese market.

More innovative services

Shanghai will encourage asset management institutions to support the development of new quality productive forces, increase investment in technological innovation, and strengthen services that facilitate the green transition.

The guidelines also support the development of charitable funds, charitable trusts, family trusts, and elderly care service trusts, as part of broader efforts to meet residents' increasingly diverse wealth management needs.

Asset management institutions will be encouraged to apply artificial intelligence, blockchain, and big data technologies in investment research, advisory services, pricing, and risk management.

Wider opening-up

Shanghai will further advance high-level opening-up in asset management and improve channels for cross-border asset allocation.

Measures include enhancing major cross-border investment mechanisms such as the Shanghai-Hong Kong Stock Connect, China-Europe Stock Connect, and Bond Connect; promoting ETF cross-listing and mutual recognition with additional overseas markets; and facilitating cross-border investment through qualified investor programs.

The city will also explore the development of cross-border and offshore asset and wealth management services.