Shanghai attracts more foreign financial firms

The growing presence of more international industry leaders serves as a snapshot of Shanghai's continued efforts to open up its financial market and bring its financial capacity to the next level.

A new Memorandum of Understanding signed between the Shanghai municipal government and the City of London Corp on March 20, is the latest example. The MoU, valid until 2028, continues the financial cooperation that started between the two cities approximately four decades ago.

Alderman Alastair King, Lord Mayor of the City of London, said at the signing ceremony that there is vast room for cooperation between the two cities especially in areas of digital finance, green finance and offshore renminbi.

With its China operations registered in Shanghai's Pudong New Area in March 2024, London-headquartered Aspect Capital believes that there are a lot of opportunities as Chinese people upgrade their wealth management needs and more financial innovations drive the ongoing technology advancement in China, according to Lin Han, general manager of Aspect Capital in China.

As one of the 10 largest commodity trading adviser managers in the world, Aspect Capital now manages about $9 billion of assets.

On Dec 13, Aspect Capital (China) Ltd completed its registration as a private fund manager with the Asset Management Association of China. The UK CTA manager was the only wholly foreign-owned PFM approved for registration throughout 2024.

Rapid progress has been made ever since. Aspect China released its first PFM product in January and completed registration of two other products one month later. The company has also submitted its application to become a Qualified Domestic Limited Partner.

Planning to step up investment in China, Aspect China will expand its local team, apply for more business qualifications and seek strategic cooperation with Chinese domestic financial service providers, said Lin.

BNP Paribas Securities China's office registered in Pudong was officially opened on March 19. With its application submitted to the China Securities Regulatory Commission, the country's top securities watchdog, in April 2021, it obtained approval in April 2024, marking the fourth wholly foreign-owned securities brokerage to be registered in China.

BNP Paribas Securities China's businesses now includes securities brokerage, securities proprietary trading, securities investment consulting and securities asset management.

According to Guo Zhiyi, BNP Paribas Securities China's CEO, this year marks the first that the company can truly extend its reach in China. By incorporating their experience and resources in the international market, the company will advance its cross-border and securities businesses in the country to provide diversified services to both local and offshore clients, he said.

France's AXA Global Reinsurance and Germany's Hannover Re have also opened their Shanghai reinsurance centers in Pudong.

With its operation set up in Lingang Special Area of China (Shanghai) Pilot Free Trade Zone, AXA can easily connect to the Shanghai International Reinsurance Exchange Ltd founded at the end of 2024, improving the efficiency of data flow and trading transparency, according to Xue Fei, general manager of AXA International Reinsurance (Shanghai) Co Ltd.

Lujiazui, the core financial area of Pudong, has now gathered around 8,000 financial institutions. Approximately 80 percent of China's foreign asset managers and 40 percent of the country's foreign banks have set up operations in Lujiazui.

According to the Municipal Government Work Report released at the beginning of the year, Shanghai will improve its capacity as an international financial center this year by optimizing its mechanisms, enriching its financial services and expanding product supply. The wider application of e-CNY, further facilitating cross-border financial services, optimizing RMB offshore trading, cross-border trade settlement and overseas financing will be the major focuses, said the work report.

shijing@chinadaily.com.cn