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Financial Industry

Updated: 2014-10-31

The added value of the financial industry in Lujiazui Finance and Trade Zone reached 99.16 billion yuan ($15.76 billion) in 2011, up 10.8 percent year-on-year and accounting for 18.08 percent of total output value of Pudong New Area and 31.54 percent of the added value of the tertiary industry of Pudong New Area.

Financial Environment

To develop its physical development environment, Pudong New Area first promoted breakthroughs in carrier and spatial capacity. The Shanghai International Financial Center and Shanghai Shipyard Sub-Project have been established. Shanghai Tower, Tangdong Headquarter, Centennial Metropolitan and other projects have been executed as planned. Second, Pudong New Area has promoted breakthroughs in commercial auxiliary functions. It has continuously built commercial auxiliary facilities in business buildings to upgrade and surpass international standards.

The functions of auxiliary facilities have also been enhanced. Twelve dining cars have been put into use and nine catering enterprises have opened operations in Oriental Floating Court, making it more convenient for white-collar workers to eat. The construction of Southern Riverside Leisure Street, Shanghai World Financial Center, Greenland Business Center and other important projects has commenced. Third, Pudong New Area has promoted breakthroughs in enhancing transportation convenience. Bus Line 1 in the Financial City has started operating and can transport 700,000 passengers every year. Fourth, Pudong New Area has promoted construction of the Wireless Financial City. Altogether 66 Wi-Fi hotspots for public areas have been completed throughout the year, accounting for 70 percent of the total planned outlay.

Pudong New Area has completed construction of Wi-Fi hotspots in public areas in 30 business buildings and opened the Wireless Financial City Wi-Fi Platform for white-collar workers. Fifth, Pudong New Area has promoted breakthroughs in the image and brand of the Financial City. The daily newspaper Lujiazui Financial City started distribution in cooperation with First Financial Daily, already releasing two trial issues. It has promoted construction of regional landmark financial information LED display screens and has established the LED project for the Centennial Overpass. Sixth, Pudong New Area has promoted breakthroughs in culture. It has signed museum opening cooperation memorandums with Aurora and Shanghai Huaneng. It has also encouraged small theaters and museums in the Financial City to open to the public.

To construct a soft financial environment, Pudong New Area first promoted formulation of a special financial plan for the 12th Five-Year Plan time period and offered guidance on construction of core financial function areas during the 12th Five-year Plan Period in the area.

Second, Pudong New Area has improved financial support policies, researched and formulated financial support policies and detailed implementation rules for the 12th Five-Year Plan period and provided policy guarantees for the development of the financial industry of Pudong New Area during the time period.

Third, Pudong New Area has improved financial talent service systems and strengthened cooperation between the International Financial Exchanges and Research Center in Pudong New Area and foreign high-level education providers. It has held three sessions of high-end financial training in the past year and trained 200 trainees. In cooperation with Renji Hospital, it has built a “Financial Talent, High-Quality Nursing” medical service platform covering around 2,000 people.

Fourth, Pudong New Area has improved service systems at financial institutions. It has developed a building and plot information monitoring service platform covering important financial cluster areas in Pudong New Area, enacted measures to make it convenient for small and medium-sized financial institutions to settle in the area, and also coordinated construction and land demands of large financial institutions.

Fifth, Pudong New Area has strengthened construction of its financial legal systems. It has explored development of regular interaction mechanisms and joint financial stability safeguarding processes. It has also promoted the development of the Financial Arbitration Court, the Financial Tribunal and the Prosecution Office of Financial Crimes. The area has held a seminar on legal issues concerning financing of non-financial institutions in cooperation with the People’s Court of Pudong New Area. It has also explored the legal environment for the development of leasing, finance guarantee and small-loan institutions as well as other non-licensed financial institutions.

Financial Institutions

To develop financial institutions, Pudong New Area first introduced regulated financial institutions to the area. It placed great importance on promoting clusters of high-end financial institutions. Morgan Stanley’s China headquarters and its joint venture securities company have settled in Pudong New Area. The RMB Transaction Business Head Office of Bank of China is being established upon approval by the China Banking Regulatory Commission. Pudong New Area has strengthened strategic cooperation with the Middle East and has attracted financial institutions from the region to establish branches in Pudong New Area. By the end of the year, total financial institutions in Pudong New Area reached 692, up 43 year-on-year. The amount includes 221 banking institutions, 276 securities institutions and 195 insurance institutions.

Second, Pudong New Area has accelerated development of non-regulated financial institutions. It has brought in equity investment enterprises and their management organizations, including enterprises such as CITIC Private Equity Funds Management, the Shanghai Financial Development Fund, the Everbright Macquarie Infrastructure Industry Fund and Partners Group. By the end of the year, the number of equity investment enterprises and their management organizations reached 784, up 337 year-on-year, with managed assets of 135.2 billion yuan ($21.49 billion), up 57.8 billion yuan ($9.19 billion) year-on-year. It has accelerated implementation of financial support policies and attracted financing lease enterprises to Pudong New Area. By the end of the year, the number of financing leasing enterprises increased to a total of 40, up 17 year-on-year with total registered capital of 21 billion yuan ($3.34 billion).

Third, Pudong New Area has developed local, small financial institutions. It has promulgated the Trial Measures of Pudong New Area for Administration of Financing Guarantee Companies and strengthened regulation of financing guarantee companies. According to uniform requirements of the Shanghai Financial Office, it has standardized and rectified commercial financing guarantee companies in Pudong New Area and finished reconfirmation and registration. It has researched a plan to standardize development of small-loan companies and deepened pilot programs for small-loan companies. By the end of the year, there were 13 financing guarantee companies in total and a guaranteed balance of 10.4 billion yuan ($1.65 billion). The area also had eight small-loan companies with a loan balance of 1.87 billion yuan ($297 million).

Fourth, Pudong New Area has accelerated development of specialized financial service institutions. It has attracted Bloomberg and other specialized service institutions and third-party payment enterprises to settle in Pudong New Area. The People’s Bank of China has published a list of the 101 third-party payment enterprises holding Payment Business Licenses. Thirteen of these enterprises are in Pudong New Area, accounting for 38 percent of total enterprises in Shanghai and 13 percent across China. By the end of the year, there were altogether 530 specialized financial service institutions, up 45 percent year-on-year.