Action Plan of Shanghai Municipality on Promoting High-quality Building of Shanghai into a Global Financial Technology Center

The building of a global financial technology center is the pivotal focus for fostering bidirectional empowerment between the Shanghai International Financial Center and the International Science and Technology Innovation Center, thereby bolstering the competitiveness and influence of the Shanghai International Financial Center. This Action Plan is formulated to capitalize on the opportunities brought by financial technology innovation and fully leverage the multiplier effect of technology in empowering financial innovation, thereby better serving the needs for safe and controllable development of the modern financial system, promoting the high-quality building of Shanghai Financial Technology Center, and accelerating the construction of Shanghai as a globally leading financial technology center within three to five years.

1. Building a Financial Technology Innovation Support System

(1) Establishing a work promotion mechanism. Relying on the Shanghai International Financial Center Construction Leading Group, we will establish a mechanism to promote the building of Shanghai Financial Technology Center to further strengthen the synergy and collaboration between financial technology hubs construction, innovative application demonstrations, and supporting resources integration.

(2) Strengthening the supporting force of expert decision-making and consultation. We will establish an expert advisory committee for the construction of Shanghai Financial Technology Center, which assembles top scientists, industry experts, and leaders of leading financial technology enterprises from both domestic and abroad, to carry out regular policy consultation, exchanges and discussions, among other activities, to provide high-level guidance and support for the initiative of building Shanghai Financial Technology Center. We will support the development of professional think tanks in the field of financial technology, explore the way to establish financial technology research institutions, and build a platform for high-end research and policy advice contributing to the construction of Shanghai Financial Technology Center.

(3) Supporting the self-innovative technical reach for financial technology. We will promote the research and development and the original innovation of technologies underlying financial technology, by focusing on artificial intelligence, cloud-native, blockchain, privacy computing, quantum computation and other fields. Mechanisms established by relevant municipal departments will be explored to determine the key projects in the field of financial technology, including its basic theories and key technologies, on a regular basis, so as to guide scientific research institutions and technology enterprises to make breakthroughs.

(4) Nurturing a financial technology incubation and acceleration system. We will encourage relevant colleges, institutes and laboratories to collaborate with technology enterprises and financial institutions and jointly establish financial technology incubators, joint innovation team, and open innovation centers. We will support financial technology clusters, science and technology parks, and incubators to establish cooperation mechanisms to promote the development of start-up financial technology enterprises and the commercialization of their research result.

2. Cultivating Innovative Financial Technology Demonstration Scenarios

(5) Accelerating the integration of finance and technology. Financial infrastructure providers and financial institutions will be encouraged to obtain specialized services through procurement, outsourcing, and joint cooperation with financial technology enterprises. State-owned financial institutions in this Municipality will be encouraged to take the lead in providing application scenarios and other resources, and cooperate with financial technology enterprises in conducting technological research and development and scenario experiment. And technology enterprises will be supported to take these application scenarios as the driving force to accelerate the research and development of key technologies and create high-quality financial technology products.

(6) Promoting the security and controllability of core technologies for informationization in the financial industry. Focusing on the development trend of information technology application innovation industry, we will support the innovation of key technologies in areas such as chips, operating systems, and databases so as to accelerate the creation of an independent and controllable ecosystem for information technology innovation within the financial field, and continuously enhance both the substitution capabilities and the application scale of the domestic technologies of key financial software and hardware. We will also encourage financial infrastructures and financial institutions to reconstruct and upgrade their core systems in accordance with relevant security and cryptography standards, and promote the comprehensive application of commercial cryptography in the financial field, thereby ensuring the independent, stable, and secure operation of financial core systems.

(7) Supporting the construction of Open Banking. We will encourage banks to promote the sharing and open access of data through open technical interfaces upon obtaining customer authorization, and to provide diversified financial products with the cooperation of financial institutions and technology companies. We will promote the standard formulation of open banking which is conducive to the system interconnection among different institutions and the formation of an open and collaborative ecosystem. We will support banks in enhancing the application of data resources and the utilization of digital technology throughout the process by leveraging platforms such as the Shanghai Financing Credit Service Platform and the Shanghai Data Exchange.

(8) Accelerating the development of asset management technology. We will promote the advancement of asset management technology by leveraging the advantages of Shanghai in building a global asset management center. We will support the Shanghai Stock Exchange (SSE) to accelerate the development of new-generation digital financial infrastructures such as the "SSE Chain" and "SSE Cloud". We will also support the development of robo-advisor to provide customers with more personalized and customized asset management services. Additionally, asset management institutions will be encouraged to enhance their capacity to use technologies in areas such as trading, risk control, and customer service, further improving the service process, operational efficiency, and risk prevention capabilities.

(9) Deepening the innovation of insurance technology. We will support insurance institutions in utilizing technologies such as artificial intelligence, blockchain, the Internet of Things, and big data to make innovations in areas such as insurance pricing, underwriting and assessment, loss assessment and claim settlement, risk control, and anti-fraud, thereby improving the level of insurance protection. We will also support the Shanghai Insurance Exchange in continuously promoting the construction of insurance business platforms, insurance intermediary service platforms, and other platforms, building independent and controllable financial infrastructures for the Shanghai International Reinsurance Registration and Trading Center, and promoting the sharing and integrated application of data elements.

(10) Promoting the digital transformation of payment and settlement services. We will encourage banks and payment institutions to develop more mobile-enabled, intelligent and scenario-based payment services. We will support payment systems and clearing and settlement infrastructures including the Shanghai Clearing House, Cross-border Interbank Payment Service Corporation, and China UnionPay, in promoting technology-driven development for better service. Moreover, we will enhance international cooperation in the field of payment services, thereby helping domestic enterprises go global with more convenient and efficient cross-border payment and settlement services.

(11) Further promoting the research, development, and application of the central bank digital currency (CBDC). By strengthening the coordination with the People's Bank of China, we will support the building of functional platforms in Shanghai for CBDC and promote the development of relevant institutions of the digital currency research institute in Shanghai. Additionally, continuous efforts will be made to broaden the reach and scale of CBDC across key sectors in this Municipality, including consumption, transportation, government services, and healthcare. We will also bolster innovative applications of CBDC in wide-ranging fields encompassing financial markets, digital shipping and trade, and cross-border payments, advance the adoption of value-based CBDC, and endeavor to build Shanghai into a global leading region for Finternet.

3. Enhancing Financial Technology Supervision and Ensuring the Financial Security Level

(12) Exploring a more flexible "Regulatory Sandbox" mechanism for financial technology. Strive to acquire the support from national financial authorities under the State Council, thus with the cooperation of their institutions based in Shanghai, the municipal departments of finance, science and technology, economy and information technology, and data, among others, will collaboratively explore a more flexible "Regulatory Sandbox" mechanism for financial technology. These mechanisms, specifically tailored to Shanghai, will offer regulatory guidance and policy support to foster financial technology innovation within a controlled environment. We will support qualified entities to participate in relevant pilot programs, such as the implementation of tools regulating financial technology innovation of the People's Bank of China and the financial technology innovation in the capital market of the China Securities Regulatory Commission. We will also encourage these entities to strengthen their coordination and cooperation with financial authorities and carry out testing of the innovation programs across business areas.

(13) Strengthening the capacity construction for the regulation of financial technology. With the support and guidance of national financial authorities under the State Council, we will continue to refine the regulatory framework based on regulatory tools of financial technology innovation. We will also intensify efforts in identifying risks stemming from financial technology activities and developing effective prevention measures. Furthermore, we will strengthen the application of regulatory technology and promote the construction of the full chain financial technology regulatory capacity in the "pre-event, during-event, and post-event" stage.

(14) Strengthening financial technology ethics construction and consumer protection measures. Financial institutions and financial technology enterprises will be encouraged to strengthen financial technology ethics construction and risk prevention awareness. Firmly committed to the positioning of financial technology, they shall get licensed before operating any financial business and ensure that all their financial activities are under regulation in accordance with laws and rules. Any financial business in the name of "technological innovation" that violate rules shall be prevented. Additionally, great importance will be attached to the promotion and education of financial technology knowledge to effectively protect the rights and interests of financial consumers.

4. Optimizing the Spatial Layout and Carrier Construction of Financial Technology

(15) Promoting the construction of financial technology hub. We will further optimize the geographic distribution of financial and technological resources concentrated in this Municipality's few key areas — the Lujiazui Financial City, the Zhangjiang Science City, the Lin-gang Special Area, as well as the belt linking the Yangpu Riverside, North Bund, the Bund, and Xuhui Riverside. We will support the Pudong New Area, the Huangpu District, and the Lin-gang Special Area to build leading financial technology hubs and demonstration zones of financial technology industry convergence, including "Lujiazui Financial City + Zhangjiang Science City" in Pudong, "Bund Financial Belt + Central Technology District" in Huangpu, and "Dishui Lake Financial Hub + Technological Innovation Headquarters" in Lin-gang. The Pudong New Area, the Huangpu District, and the Lin-gang Special Area will capitalize on their respective industrial advantages to formulate dedicated supporting policies, gather core factors of developing financial technology industry, and introduce high-level financial technology innovation entities.

(16) Promoting the agglomeration and development of financial technology enterprises. Financial technology companies and functional institutions established by the financial authorities under the State Council in Shanghai, financial technology companies established by financial infrastructure providers and financial institutions, key financial technology projects and platforms introduced from outside this Municipality, and institutions providing information technology services to financial institutions and financial authorities, that are located in the financial technology hubs and also meet the qualifications after being recognized, will be supported by the local government (or administrative committee) in accordance with laws and rules.

(17) Encouraging the construction of financial technology innovation entities. We will support financial infrastructure providers, financial institutions, and large technology enterprises, among others, to establish financial technology research and development centers and innovation platforms in Shanghai. We will also foster collaboration among multiple parties to establish diverse joint laboratories and incubators, thereby accelerating technological innovation and its commercialization. Any platforms located in the financial technology hubs, which have been identified qualified, will be supported by the local government (or administrative committee) in accordance with laws and rules.

(18) Building high-quality space carriers for financial technology. We will promote the coordination of space resources within the financial technology hub and support the construction of space carriers for financial technology to attract more financial technology enterprises and related service agencies to the region. We will also carry out assessment and recognition of municipal financial technology demonstration parks (buildings) to encourage the development of high-quality financial technology parks (buildings).

5. Reinforcing the Construction of Financial Technology Infrastructures

(19) Constructing safe and efficient financial infrastructures. We will support the adoption of financial technology and its digital transformation and upgrade within existing financial infrastructure in Shanghai. We will also encourage the use of technologies such as blockchain, artificial intelligence, big data, and privacy computing, in areas including payment and settlement, registration and custody, asset transactions, data management, credit rating, and investor protection, to build safe, controllable, open, inclusive, and high-performance financial core systems.

(20) Promoting the construction of foundational infrastructure, including computing power, corpus and blockchain, for the financial sector. We will motivate financial infrastructure providers, financial institutions, and financial technology enterprises to take active part in the construction of Shanghai Artificial Intelligence Public Computing Platform and make full use of the platform's infrastructure resources to optimize computing power allocation. Additionally, with the support of Shanghai Large Model Corpus Data Union and other platforms, we will foster their multilateral cooperation to create a Shanghai large-scale financial corpus database. This initiative will help to realize high-quality supply of financial corpus data and drive innovative applications of large models within the specific financial field. We will also support those Shanghai-based entities in their joint efforts to construct the municipal blockchain infrastructure and explore new collaborative approaches through cross-chain cooperation and other models. We aim to establish a number of eligible and secure demonstration scenarios for blockchain applications in the financial sector, setting leading examples in the field.

(21) Promoting the open exchange and sharing of data elements. We will further optimize the open access of public data, coordinate the development of municipal financing credit service platform, and encourage more financial infrastructure providers, financial institutions, and local financial organizations to connect with the platform. We will also promote the construction of a medical insurance big data innovation laboratory with the cooperation of the Shanghai Insurance Exchange to facilitate data sharing and integration between medical insurance and commercial insurance. Moreover, we will leverage the institutional innovation and pilot advantages of the Shanghai Free Trade Zone and the Lin-gang Special Area to formulate a negative list for cross-border data flows in finance, thereby promoting the secure and orderly cross-border flow of financial data.

6. Strengthening Financing Support for Financial Technology Enterprises

(22) Enhancing direct investment and financing support for financial technology enterprises. We will explore the establishment of a dedicated Shanghai financial technology industry fund and further leverage the role of government guidance funds to guide and encourage social capital for increased investment in financial technology. We will also encourage large financial institutions and technology enterprises to establish dedicated equity investment funds in Shanghai to develop an equity investment system covering the entire life cycle of financial technology enterprises. Committed to advancing the "Light of Huangpu River" initiative, we will support financial technology enterprises in securing financing by utilizing multi-level capital market and various channels including listings and bond issuance. We will also encourage those leading enterprises to cement their core business and further intensify resource integration within the industrial chain through absorption, mergers, acquisitions and restructuring. We will support financial technology enterprises to carry out cross-border mergers and acquisitions to integrate high-quality overseas project resources.

(23) Continuously improving financial services for financial technology innovation. We will encourage banks to delve into the financing needs of financial technology enterprises, and bolster targeted credit financing support for research and development, technological transformation, as well as equipment upgrades in key financial technology areas. We will also enhance the financing matchmaking with the support of municipal inclusive finance advisory system and financing service centers in various districts (parks). Insurance institutions based in Shanghai will be motivated to develop the suite of insurance products for technology enterprises, such as liability insurance for business venturing and loss insurance for the cost of technological achievements commercialization. Insurance institutions will also be supported to offer integrated solutions to financial technology enterprises for insurance, including co-insurance, large commercial insurance, and master policy.

7. Optimizing the Environment for Financial Technology Development

(24) Developing Shanghai into a magnet for financial technology talents. We will drive Shanghai-based universities and colleges to develop financial technology majors and disciplines. We will establish and improve a talent cultivation mechanism that combines industry, academic and research institutions, and promotes collaboration between schools and enterprises, and establish a financial technology talent training and practice base. The Chartered Global Financial Technology (CGFT) will be built into a quality program for talent cultivation and certification and those who have acquired the program's recognition and met the relevant requirements will be given certain subsidies. Financial technology talents will also be motivated to apply for various talent programs such as Shanghai Oriental Talents Plan. We will create a more favorable environment for activities related to financial technology innovation and entrepreneurship.

(25) Promoting the development of financial technology industry organizations. We will support the growth of financial technology industry organizations such as the Shanghai financial technology industry alliance and the intelligent investment research technology alliance. We will also leverage the foundation of integrated development of the Yangtze River Delta region and the advantages and leading role of Shanghai International Financial Center to pool rich resources including the universities, enterprises, and technology in the sector, and thus to develop a financial technology ecosystem in the Yangtze River Delta.

(26) Cultivating high-quality financial technology innovation projects. We will establish a separate list of "Financial Technology" project selection in the "Shanghai Financial Innovation Award", intensify the efforts to recognize and publicize outstanding financial technology projects, and grant award-winning enterprises rewards in accordance with the municipal financial innovation award policies. We will also explore the launch of a dedicated "Shanghai Financial Technology Innovation Program" and give rewards to projects and scenarios that have been recognized as significant in advancing the development and cutting-edge innovation of the financial technology industry.

(27) Improving the supporting service system for the financial technology industry. We will advance the building of a specialized service system for financial technology by promoting accounting, legal and consulting institutions to provide professional services. We will encourage financial technology enterprises to deeply engage in the development, revision, and promotion of standards for large models, generative AI, blockchain, and public data sharing. After the standards are released, enterprises or institutions that have taken the leading role in formulating the standards concerned will be given one-off subsidy in accordance with the relevant policies of this Municipality. We will also support eligible financial technology enterprises in applying for certifications of high-tech enterprise and specialized, refined, and innovative enterprise. We will actively promote the development of institutions providing services such as credit reporting, asset evaluation and credit rating.

(28) Establishing a platform for international exchanges and cooperation in financial technology. We will hold a number of high-level brand activities with international prominence to continuously enhance the global influence of Shanghai financial technology center. By comprehensively utilizing various channels, we will make intensified efforts to publicize and promote the Shanghai financial technology center, including the release of White Paper on Shanghai Financial Technology Development.

(29) Refining incentive and supportive measures. We will seek to formulate supportive policies for financial technology, attach great importance to key elements and important parts within the industry, and provide financial support for technological innovation, research and development, industrial agglomeration, key projects, standard establishment, and talent cultivation in this Municipality. Committed to improving government service, we will foster synergy between municipal and district governments to provide one-to-one service for those leading financial technology enterprises and unicorn companies.

(30) Enhancing communication and coordination between the central and local governments. Relying on the central-local coordination mechanism established for Shanghai International Financial Center, we will take further steps to communicate and coordinate with financial authorities under the State Council to seek their guidance and support. Under the overall framework of building Shanghai International Financial Center, we will make coordinated efforts to advance the innovative development, regulatory collaboration, and risk prevention, among other tasks, in the field of financial technology.

(31) Expanding the influence of publicity and promotion efforts. We will establish a mechanism for the regular release of typical cases and create a "Financial Technology Innovation Cases Collection" to promote typical cases in the industry and create a positive and favorable environment of public opinion. Activities aimed at advancing the promotion and interpretation of financial technology policies will also be carried out to expand the reach and impact of those policies.

This Action Plan will be effective as of October 1, 2024, and remain valid until September 30, 2029.