Business / Economy

Shanghai to benefit from new bank's HQ

By WEI TIAN in Shanghai, CHEN WEIHUA in Washington and AMY HE in New York (China Daily) Updated: 2014-07-17 04:14

Institution to provide business opportunities to Chinese investors

The newly established BRICS development bank, to be headquartered in Shanghai, will help the city realize the aspiration of becoming a global financial center, experts said.

"It's the first time a major international institution will be headquartered in Shanghai. It signals that the city's financial services are of a global standard," said Chen Bo, an economist at Shanghai University of Finance and Economics.

Shanghai to benefit from new bank's HQ
BRICS bank to be headquartered in Shanghai 

Shanghai to benefit from new bank's HQ
BRICS leaders hail outcome of first-day summit

Brazil, Russia, India, China and South Africa, or BRICS, announced the founding of the New Development Bank on Tuesday during a summit in Brazil.

The new bank reflects the growing influence of BRICS, which accounts for almost half the world's population and about one-fifth of global economic output.

It will have an initial subscribed capital of $50 billion equally shared among the founding members, and will support infrastructure and sustainable projects in developing countries.

Chen said the bank will greatly benefit Shanghai as intergovernmental loans bring in more commercial transactions. Favorable policies expected to be launched in the experimental Shanghai Free Trade Zone will help create a hospitable business environment.

In June, the biggest bank in Latin America, Banco do Brasil, decided to upgrade its office in Shanghai to a branch, to tap into opportunities emerging from expanding trade and investment between the two nations.

Chen said expanding business relations among BRICS countries lays a solid foundation for Shanghai to build itself into a global financial center by 2020.

Ye Yu, a researcher at the Shanghai Institute of International Studies, said the city's infrastructure, security and business climate are incomparable among other BRICS cities, making it the first choice as a venue for the bank's headquarters.

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