The idea of the Shanghai authorities is to transform the city into an international financial centre
Shanghai wants to become an international financial centre. The city authorities, in fact, have announced new measures to open financial activities at a wider level. The municipal authority in question, in fact, has hinted that in the near future there may be several new opportunities in the banking, securities and insurance sectors.
Banks financed by foreign funds will be encouraged to set up branches in Shanghai, and the city administration will also support the establishment of foreign securities, funds and companies with foreign ownership. The Shanghai-based insurance companies will also be expanded.
The Shanghai authorities are already working to identify the facilities that will attract investments
Among the many tricks on which the administration of Shanghai is reasoning to attract new capital, there is also support for foreign investors in the real estate market. In fact, they can issue depository receipts from Shanghai.
The practice of free trade accounts, allowing funds to move freely between the free trade zone (FTZ) and offshore entities, will be widespread in the Yangtze River Delta region and the Yangtze River economic zone.
In addition, Shanghai will open its market to credit card companies and those dealing with ‘non-bank’ payments. Furthermore, restrictions on rating services relating to companies with foreign funding will be reduced.
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