Building Shanghai into an international financial center is a key national strategy. In 2023, Shanghai released a series of significant policies to promote a comprehensive reform pilot program in the Pudong New Area.

The city also adheres to high-standard international economic and trade rules, promoting the high-level institutional opening-up of the China (Shanghai) Pilot Free Trade Zone. This has provided significant impetus to Shanghai's international financial center initiative.

Shanghai has one of the world's most comprehensive financial market systems. The city has built a robust financial factor market and integrated critical infrastructure such as registration, custody, and clearing of financial products.

This foundation guarantees the issuance, pricing, trading, payment, settlement, and risk management of renminbi-denominated financial assets. Shanghai is one of the world's leading financial markets in terms of size.

In 2024, the total turnover of Shanghai's financial markets reached 3,650 trillion yuan ($5002.51 trillion), an increase of 8.2 percent year-on-year.

Increased financial institutions

Shanghai's diverse range of Chinese and foreign financial institutions promotes sustainable and high-quality financial development.

By the end of 2024, Shanghai had 1,782 licensed financial institutions. The city's total domestic and foreign currency deposits increased by 7.7 percent to 22.01 trillion yuan.

The International Monetary Fund Shanghai Regional Center and the Shanghai International Reinsurance Exchange were established in 2024. In March, the Shanghai Equity Exchange launched a special board for companies that specialize in niche sectors, command a large market share, and have a strong innovation capacity.

While Shanghai has the largest number of bank wealth management companies, securities brokerages, fund companies, and futures companies in China, foreign companies account for more than 30 percent of all the financial service providers registered in the city.

Improved financial services

The scope of financial openness has grown, with major institutional arrangements and financial products launched and opened to international investors.

The Shanghai Futures Exchange listed options for lead, nickel, tin, and alumina, completing its coverage of all non-ferrous metal options. Angel investment, venture capital, and private equity investment have all seen consistent growth.

Shanghai has launched a green finance service platform, strengthening its position as an international green finance hub. The balance of inclusive microloans reached 1.3 trillion yuan, up 15 percent.

Exploring financial reforms

Shanghai has emerged as the country's pioneer for financial reform and innovation. The city has taken the lead in exploring financial reforms in the pilot FTZ, strengthening its position as a cross-border renminbi hub.

Shanghai's business environment for the financial sector has been continuously optimized and it now provides comprehensive support for financial institutions. Efforts to enhance the rule of law in the financial sector have been strengthened, while credit and consumer protection systems have been constantly improved. Foreigners benefit from greater payment convenience.

Shanghai's growth as an international financial center will be centered on establishing a more open, efficient, stable, and dynamic financial system. This includes enhancing its global resource allocation capabilities and working toward breakthroughs.

Updated: Feb 25, 2025

Sources: Office for Advancing International Financial Center Development of the Shanghai Municipal People's Government, Shanghai Municipal Government Work Report