AIA Life Insurance recently announced the renewal of its lease for the AIA Building at No 17, the Bund, reaffirming its long-term commitment to the Chinese market.

AIA's roots run deep in Shanghai. Its founder, Cornelius Vander Starr, chose the city to start his insurance business in 1919. During the 1930s and 1940s, Starr set up the company's offices at No 17, the Bund, an address that has since become a symbol of AIA's enduring bond with the city.

In 1992, amid the wave of reform and opening-up, the Hong Kong-based multinational reestablished its presence in China with a branch in Shanghai, becoming the first foreign-owned agency licensed for the individual life insurance business in the country. Four years later, AIA leased the entire building at No 17, the Bund on a long-term basis and renamed it the AIA Building to serve as its Chinese mainland headquarters.

Benefitting from China's steady opening-up of its financial sector over the past three decades, the Shanghai branch was successfully transformed into a subsidiary. AIA Life Insurance became the first wholly foreign-owned life insurance company in the Chinese mainland, gradually expanding its operations from five to 14 regions and reaching an estimated 340 million potential customers.

In January 2023, the AIA Financial Center was inaugurated in the North Bund, marking the largest asset acquisition by AIA Life Insurance. In June 2025, AIA received approval to establish an insurance asset management company in Pudong New Area. Its growing investments in Shanghai underscore the city's strong appeal as an international financial center.

By the end of 2024, Shanghai was home to 1,782 licensed financial institutions. Among them, 555 were foreign-funded, accounting for more than 30 percent of the city's total.

AIA is not alone in deepening its roots in Shanghai. A growing number of global financial institutions are choosing the city not only as an entry point into the Chinese market, but also as a long-term strategic base.

BNP Paribas, for instance, has expanded its presence in the city through a series of partnerships and new ventures. In addition to its joint venture with Haitong Securities in managing the Fortune SG Fund, the French bank also co-established Amundi-BOC Wealth Management with the Agricultural Bank of China. Most recently, it launched BNP Paribas Securities in Shanghai, marking its formal entry into China’s securities sector.

"China is the world's second-largest economy, and every international financial institution should be paying close attention to its market. Our strategy to build securities services in China is a long-term one," said Guo Zhiyi, chairman of BNP Paribas Securities, emphasizing the group's commitment to a broad financial footprint in the country — from banking and insurance to wealth and asset management.

Similarly, Morgan Stanley Securities (China), headquartered in Shanghai, has accelerated its local expansion. The company recently introduced investment advisory services and broadened its proprietary trading to cover the full spectrum of securities. It also obtained a futures license, with its wholly owned subsidiary, Morgan Stanley Futures (China), now officially in operation.

Reinsurance is also gaining traction in the city. French insurance giant AXA recently conducted a roadshow at the Shanghai International Reinsurance Registration Center — the first by a global primary insurer at the venue. Located in the Lin-gang Special Area, the center is quickly evolving into an international reinsurance hub, with 21 reinsurance operation centers and four reinsurance brokers, including AXA Global Reinsurance (Shanghai) and Hannover Re's Shanghai branch.

"The comprehensive financial infrastructure and world-class business environment in Shanghai have strengthened our confidence and determination to expand operations here," said Zhao Peng, CEO of Citadel Securities, reflecting the sentiments of many global financial players.

Source: Shanghai Observer