Companies benefit from Lujiazui's inclusion into Shanghai FTZ
( chinadaily.com.cn )
Companies in Lujiazui, Shanghai's financial hub, have benefited from the preferential policies of the city's free trade zone (FTZ), since the area was incorporated into the FTZ in April 2015.
Lujiazui's tax revenue increased 42 percent year-on-year in the first half of 2016, driven by FTZ's preferential policies and Lujiazui's status as a major venue for financial reform.
Financial leasing arms of the Bank of Communications, Huarong, and China Merchants Bank have set up professional subsidiaries in aviation and shipping in Lujiazui, after the country encouraged financial leasing companies to do so in the FTZ as of Sept 2015.
Foreign companies were also allowed to establish wholly-owned subsidiaries in the FTZ. The first was Aberdeen Asset Management, Europe's largest listed fund manager, which obtained a wholly foreign-owned enterprise business license last September and opened an office in Lujiazui.
So far, more than 20 top asset management institutions from countries such as the US, France, and Japan have established or announced intentions to establish such subsidiaries in Lujiazui.
To better fulfill its mission and accelerate its internationalization, Lujiazui introduced management reforms, including creating a new Lujiazui Financial City Development Bureau and establishing a management board on Aug 24. Ninety percent of the board members are from key industries and enterprises, industry organizations, and building developers.
This new management model is expected to unite Lujiazui's resources, enhance its global competitiveness and influence, and help Shanghai become a global financial center to rival London and New York.