Four new financial institutions held a collective opening ceremony in Shanghai on March 19, marking a significant development in the city's bid to become a leading global financial center.

The new arrivals include BNP Paribas (China) Ltd, a wholly foreign-owned securities company, and three institutions dedicated to reinsurance service – the Shanghai International Reinsurance Exchange, the Shanghai Reinsurance Operations Center of AXA International Reinsurance (Shanghai) Co Ltd, and the Shanghai Reinsurance Operations Center of Hannover Re Shanghai.

Wu Wei, executive vice-mayor of Shanghai, emphasized the city's dedication to fostering a flourishing environment for financial institutions during the ceremony. He highlighted Shanghai's strengths in attracting talent, promoting a favorable business climate, and offering plentiful investment opportunities.

Among the new arrivals, BNP Paribas (China) Ltd stands out as the fourth wholly foreign-owned securities company in China. Guo Zhiyi, CEO of BNP Paribas (China) Ltd, expressed the company's goal to leverage its international expertise and resources to drive cross-border and securities business, providing diverse financial services to both local and international clients. He said operations in the Chinese securities market are a long-term strategy.

"We have been operating in the Chinese financial sector for many years, covering various segments like banking, insurance, fund management, wealth management, and consumer finance," Guo said. "As the world's second-largest economy, China deserves attention from foreign financial institutions."

The opening of the Shanghai International Reinsurance Exchange, China's first international reinsurance registration and trading platform, marks a key step in advancing the country's reinsurance market. The platform, run by the Shanghai Insurance Exchange, is expected to play a critical role in promoting market openness, enhancing risk management capabilities, and supporting the Belt and Road Initiative.

The reinsurance operations center will serve as an online trading platform, mirroring the offline transactions previously conducted in the reinsurance market. The online platform provides additional features such as real-time transactions and integrated clearing and settlement, further enhancing the efficiency and transparency of transactions.

Xue Fei, general manager of AXA International Reinsurance (Shanghai), explained the company's decision to establish a reinsurance operations center in Shanghai.

"We are impressed by the favorable business environment of the Lin-gang Special Area," Xue said. "More importantly, we can connect with the Shanghai International Reinsurance Exchange, using it to enhance data flow efficiency and improve transparency among trading partners."

The establishment of these four institutions reflects a broader trend of growing foreign investment in China's financial sector. In January, Wu Qing, chairman of the China Securities Regulatory Commission, announced that the commission had approved the establishment of 26 foreign-owned or wholly foreign-owned securities, fund management, and futures companies.

Source: Jiemian.com