The Lujiazui area of the China (Shanghai) Pilot Free Trade Zone in Shanghai's Pudong New District recently welcomed a new finance giant – the China Insurance Investment Co – which is expected to shore up its status as the city's financial hub, local media reported on Jan 6, adding that the company will set aside a 30-billion yuan ($4.5 billion) fund to help Pudong with its economy, construction and welfare.

The newly-established company has 1.2 billion yuan in registered capital. Pudong has promised that it will give strong support for investment opportunities, hiring and policies to ensure the the new company can get started as soon as possible.

According to the China Insurance Regulatory Commission, the company helps manage a national insurance investment fund that was approved by the State Council in July.

The company says that the fund is expected to ultimately reach 300 billion yuan to back such projects as housing renovation, urban infrastructure, water conservation and the Belt and Road Initiative. It can also be used for emerging industries, logistics, healthcare, information technology, environmental protection, and small-to-mid sized enterprises.

The company says it will help the China Merchants Steam Navigation Co with its overseas port projects and will support a liquefied natural gas project with Russia.

Local authorities explain that the company was attracted by preferential policies and financial reforms in the free trade zone, which are also attracting other leading financial institutions, such as the Shanghai Insurance Exchange, which will help increase the district's global influence and help Shanghai reach its goal of becoming an international financial center.