Reforms to drive economic renewal

Qingdao has found the key to unlock further growth in its financial industry and the emerging wealth management sector, said a local official.

"With a string of innovative reforms, preferential policies, and information and trading platforms, Qingdao has attracted financial businesses from across the world to its budding development as a global management center," said Zhang Xinqi, mayor of the city.

After the Qingdao Wealth Management Financial Comprehensive Reform Pilot Area was approved by the State Council in February 2014, its development committee worked out a raft of reform proposals.

Thirty-five new policies and strategies have been affirmed by various ministries, many of the initiatives now in force.

Policies include a qualified domestic limited partner program, a comprehensive wealth management plan and a supervision mechanism.

Foreign-invested enterprises are now able to operate exchange settlement business for their registered capital to hedge against risks in exchange rates.

Zhang said the reforms have helped financial institutions, wealth management providers and financing platforms spring up in Qingdao.

To date, 205 financial institutions, including 10 private banks that manage 50 billion yuan ($8 billion) in combined assets, are operating in the city. Drawn to the opportunities in the burgeoning market, independent wealth management institutions such as Noah Wealth and Credit Ease have also arrived.

Hang Tang Wealth, a leading Chinese third-party financial services provider, even decided to build its North China head office in Qingdao.

In addition, a number of multi-functional wealth management platforms are also under preparation, including the Haier United Credit Equity Exchange, the Qingdao International Asset and Equity Exchange, and the Qingdao Commodity Transaction Service Center.

The city has enhanced cooperation with top-notch educational and R&D institutes to develop the talent crucial to success in wealth management, Zhang said.

Last year, the China Finance 40 Forum, a leading financial think-tank, began plans to build a financial academy in Qingdao.

As well, Shanghai University of Finance and Economics and Shandong University are setting up wealth management-related majors and research institutes.

The profile of Qingdao's wealth management sector rose quickly following a number of prestigious financial events including the Jinjialing Fortune Forum 2014 and a series of media reports on the city's financial development.

Qingdao has also worked with China Renmin University to develop a range of financial research publications widely read by professionals across the country.

In 2014, local financiers doubled their marketing efforts by holding a number of promotional campaigns in China and abroad, including those in Britain and Switzerland.

Zhang said the wealth management reform in Qingdao aims to drive the real economy and help with economic restructuring.

xiechuanjiao@chinadaily.com.cn

(China Daily 02/10/2015 page6)