Regulations of Shanghai Municipality on Promoting the Building of Shanghai as an International Financial Center

(Adopted at the 12th Session of the Standing Committee of the 13th Shanghai Municipal People's Congress on June 25, 2009; amended at the 15th Session of the Standing Committee of the 16th Shanghai Municipal People's Congress on August 22, 2024)

Chapter I General Provisions

Article 1

With a view to accelerating the building of Shanghai as an international financial center (hereinafter referred to as "Shanghai International Financial Center" as needed), unswervingly following the path of financial development with Chinese characteristics, and serving the strategic goal of building a financially powerful country, these Regulations are formulated in accordance with the relevant laws and administrative rules and in the light of the actual circumstances of this Municipality.

Article 2

These Regulations apply to the work conducted in this Municipality for promoting the building of Shanghai as an international financial center.

Article 3

This Municipality shall strengthen the development of the modern financial system, expand the high-level financial opening-up, promote high-quality financial development, coordinate financial development and financial security, and better serve the real economy, scientific and technological innovation, and the co-development of the Belt and Road Initiative, with a view to developing Shanghai into a global RMB assets allocation center and risk management center and enhancing the competitiveness and influence of Shanghai as an international financial center.

Article 4

This Municipality promotes the establishment of a coordination mechanism between the central and local authorities in building Shanghai as an international financial center, and, under the guidance of the central financial regulatory administration, uphold and strengthen the Party's overall leadership in financial work and promote such work as the Party-building in the financial sector, financial reform and opening-up, financial services for real economy, financial regulatory coordination, and risk prevention and resolution.

The Shanghai branch of the central financial regulatory administration performs the relevant responsibilities and duties in accordance with law to jointly promote the building of Shanghai as an international financial center.

Article 5

The Municipal People's Government shall strengthen the leadership in promoting the building of Shanghai as an international financial center, establish a coordination mechanism, organize the formulation of a development planning thereof, and intensify the joint development of the Shanghai International Financial Center with the international economic, trade, shipping, and scientific and technological innovation centers.

The district people's governments of this Municipality shall, in accordance with the work arrangements of this Municipality and within their respective administrative areas, well perform the relevant work of promoting the building of Shanghai as an international financial center.

Article 6

The municipal financial regulatory administration is responsible for coordinating and promoting the building of Shanghai as an international financial center, formulating phased goals  thereof, and promoting the implementation of the relevant measures.

The municipal departments, such as the departments of development and reform, economy and informatization, commerce, science and technology, finance, planning and natural resources, ecology and environment, housing and urban-rural development, transport, state-owned assets administration, intellectual property, cyberspace administration, data management, talent management, human resources and social security, and judicial administration, are responsible for implementing the work related to promoting the building of Shanghai as an international financial center based on their respective responsibilities and duties.

Article 7

The Municipal People's Government shall optimize the regional financial spatial layout and upgrade the functional levels of Lujiazui Financial City and the Bund financial agglomeration belt. The Pudong New Area shall demonstrate the effect of comprehensive reform, build the core area of the Shanghai International Financial Center, and enhance its functionality of global resource allocation.

Article 8

The Municipal People's Government shall, in coordination with the central financial regulatory administration, improve the administration of pre-establishment national treatment with a negative list, align with the relevant financial rules in the international high-standard economic and trade agreements, and enhance the transparency, stability, and predictability of the policies concerning financial opening-up.

China (Shanghai) Pilot Free Trade Zone and Lin-gang Special Area shall, in light of their regional functional positions and in an expeditious manner, take a lead in making explorations and trials of financial reform and innovation, and implement the high-level institutional opening-up of the financial sector.

Article 9

The Municipal People's Government shall arrange Shanghai financial development funds for rewarding and supporting the financial institutions, financial talents, financial innovations, and the like.

Article 10

This Municipality develops the financial culture with Chinese characteristics and guides the financial industry to adhere to innovation on the basis of workable experience, to carry forward the culture of integrity and the doctrine of good faith in contract, to establish a proper view of operation, performance and risk management, to operate prudently and steadily in accordance with law, and to fulfill their social responsibilities.

Article 11

In accordance with the national arrangements, this Municipality strengthens mutual coordination and support in the financial field with the other regions of China, and strengthens cooperation and exchanges in such fields as financial reform and innovation, financial services for the real economy, prevention and resolution of financial risks, and training of financial talents.

In accordance with the arrangements of the State, this Municipality promotes the improvement of the financial service system for serving the integrated development of the Yangtze River Delta, and increases financial support for the coordinated development strategy of the regions such as the Yangtze River Economic Belt.

Article 12

This Municipality strengthens cooperation and exchanges with other international financial center cities in such aspects as development of the financial markets and the financial institutions, training of the financial talents, and management of the financial risks, and actively participates in international financial governance.

The Municipal People's Government provides supports for holding the Lujiazui Forum and other international financial conferences to promote global dialogue and cooperation in the financial field.

This Municipality formulates policies and measures to bring together international financial organizations, international financial industrial associations, and new types of multilateral financial organizations therein.

This Municipality encourages the institutions, such as financial infrastructure operating institutions, financial institutions, local financial organizations, industrial organizations, financial education and research institutions, and finance-related think tanks, to carry out international cooperation and exchanges.

Chapter II Development of the Financial System

Article 13

In accordance with the State requirements for accelerating the establishment of a modern financial system with Chinese characteristics and in coordination with the central financial regulatory administration, this Municipality improves a reasonably-structured financial market system, a collaborative financial institution system, a diversified professional financial product and service system, and an independent, controllable, safe, and efficient financial infrastructure system.

Article 14

The Municipal People’s Government and its relevant departments shall, in accordance with the State requirements and in coordination with the central financial regulatory administration, intensify the reform of the financial markets, such as the markets of currency, foreign exchange, bonds, stocks, futures and derivatives, insurance, gold, negotiable instruments, trusts, and equity, promote the orderly interaction on and strengthen the regulative coordination among the financial markets, increase the proportion of direct financing, expand the functions of investment and financing as well as risk management, improve the level of internationalization of the financial markets, and enrich the indicator systems of "Shanghai price" and "Shanghai index" in the financial sector to develop the pricing benchmark of RMB assets.

Article 15

The Municipal People's Government and its relevant departments shall, in coordination with the central financial regulatory administration, strengthen the development of the financial institution system, support the development of financial institutions and local financial organizations, such as the institutions of banking, securities, insurance, trusts, futures, and funds, encourage domestic and foreign financial institutions to establish functional headquarters, branches, professional subsidiaries, and franchises in this Municipality, and develop financial institutions with international competitiveness and industrial influence.

The Municipal People's Government and its relevant departments shall, in coordination with the central financial regulatory administration, encourage the financial institutions in Shanghai to identify their positioning, innovate their organizational forms, optimize their differentiated development paths, and improve their incentive and restraint mechanisms for serving the real economy.

Article 16

The Municipal People's Government and its relevant departments shall, in coordination with the central financial regulatory administration, support such institutions as the financial institutions and financial infrastructure operating institutions in improving the basic financial products, such as credit, stocks, bonds, trusts, and insurance, develop futures and derivatives products, enrich risk management tools, and build a full-range financial system with rich and diverse products and services.

This Municipality encourages such institutions as the financial institutions and financial infrastructure operating institutions to strengthen the application of blockchain, artificial intelligence, big data, and the other technologies to improve the risk control systems and increase the supply of financial products and services.

Article 17

The Municipal People's Government and its relevant departments supports the central financial regulatory administration in establishing financial infrastructure operating institutions in this Municipality, and collaboratively promotes these financial infrastructure operating institutions to realize interconnection and intercommunication between the Mainland of China and the other parts of the world. The Municipal People's Government encourages the financial infrastructure operating institutions in Shanghai engaging in businesses such as transaction, payment, clearing, settlement, registration, custodian, and credit investigation to strengthen the development of their core technologies and upgrade their functionalities, to provide services such as pricing, risk management, and financial collateral management, and to participate in the formulation of international financial standards and rules.

Article 18

The municipal financial regulatory administration shall, jointly with the relevant departments of this Municipality and the district people’s governments, provide services for the institutions such as financial institutions and financial infrastructure operating institutions in such aspects as registration, talent introduction, land use, office space, electricity, transportation, telecommunication, computing power, and taxation.

Chapter III Reform and Opening-up of the Financial System

Article 19

The Municipal People's Government shall, in coordination with the central financial regulatory administration, promote high-quality development of the capital market, deepen the reformation of the registration system for stock issuance, promote high-level development of the Science and Technology Innovation Board, and optimize the systems of the Board, such as the systems of issuing and underwriting, equity and bond financing, merger and reorganization, market transaction, equity incentives, and delisting supervision.

The municipal financial regulatory administration shall, jointly with the relevant municipal departments of this Municipality and the district people’s governments, improve the coordination mechanism, and in reliance on the functions of the digital service platform, provide services for the enterprises, planning for public offering or already listed, in such aspects as incubation, pre-listing tutoring, compliance management, high-quality development of listed companies, and risk prevention.

The municipal and district departments, such as the department of planning and natural resources, the state-owned assets administration, the tax services, and the judicial administration, shall, under the facilitation principle, handle such matters as project approval, change of the nature of land-use or real estate ownership, asset transfer, tax and fee reduction, and confirmation of property rights for the enterprises planning for public offering, standardize such matters as the handling of certificates and licenses and the confirmation of state-owned equity, and promote the acceptance of "the compliance code" in the listing process.

Article 20

The Municipal People's Government and its relevant departments shall, in coordination with the central financial regulatory administration, carry out bond business innovation and establish a mechanism for coordinative supervision over the bonds by the relevant central and municipal departments, and a mechanism for default risk prevention and resolution.

This Municipality supports the interconnection of the infrastructure between the inter-bank bond market and the exchange bond market and their unified opening to the outside world under the guidance of the central financial regulatory administration, explores the possibility and supports qualified investors from outside the Mainland to participate in such markets as the inter-bank interest rate derivatives market or treasury bond futures and spot market, facilitates the RMB bonds as qualified collateral to participate in global trading, to improve the level of internationalization of the bond market.

Article 21

The Municipal People's Government shall, in coordination with the central financial regulatory administration and such departments of the State as the departments of development and reform, commerce, finance, tax services, natural resources, and customs, improve the product line of futures and derivatives and promote more varieties of futures and options to be listed on the exchange and opened to the outside world, to perform their functions of price discovery, risk management and resource allocation.

This Municipality supports the establishment of a basic platform in the field of national bulk commodity circulation to provide services such as centralized registration and retrieval of bulk commodity warehouse receipts, and supports application on both domestic and foreign markets of the benchmark prices of major bulk commodities.

Article 22

The Municipal People's Government and its relevant departments shall, in accordance with the unified plan of the central financial regulatory administration, promote the internationalization of RMB, encourage all kinds of business entities to use RMB in such fields as bulk commodity, cross-border e-commerce, shipping services, and international investment and financing, to strengthen the functions of RMB in valuation, payment, settlement, trading, and investment and financing.

The Municipal People's Government shall, jointly with the central financial regulatory administration, build a financial service system that meets the enterprises' needs for operating internationally, and develop cross-border and offshore financial businesses. The Municipal People's Government shall, under the guidance of the central financial regulatory administration and based on the rules and regulations for the Pudong New Area, explore the offshore-related trading and foreign exchange management systems, and develop RMB offshore trading on the condition that the risks are controllable.

Article 23

This Municipality develops and brings together various types of asset management institutions, supports the asset management industry in optimizing its products and services, and encourages commercial banks to establish specialized escrow institutions in the Municipality.

The municipal financial regulatory administration shall, jointly with the Shanghai branch of the central financial regulatory administration and the municipal departments, such as the departments of commerce and market regulation, establish a joint working mechanism, intensify the leadership in making experiments and trials on projects of domestic investment by qualified overseas limited partners and overseas investment by qualified domestic limited partners, broaden the scope of investment, expand the scope of participants, and innovate investment modes.

Article 24

The Municipal People's Government shall, in coordination with the central financial regulatory administration, promote the development of Shanghai International Reinsurance Center, formulate policies and measures, speed up the agglomeration of institutions, and expand the scale of reinsurance business. The insurance and reinsurance institutions are encouraged to develop reinsurance business in the key areas such as integrated circuits, aerospace, and green shipping, to improve their capacity of providing effective supply of reinsurance in the areas with special risks. The Shanghai International Reinsurance Registration and Trading Center is developed to promote the advancement of cross-border reinsurance and domestic reinsurance businesses and strengthen risk management.

Article 25

The Municipal People's Government will, in coordination with the central financial regulatory administration, encourage the financial infrastructure operating institutions in Shanghai to play the role of the central counterparty clearing mechanism, improve the efficiency of capital settlement in the financial market, and enhance the hub position of the Shanghai International Financial Center in asset management and capital distribution.

Article 26

This Municipality supports the development of regional equity markets, intensifies the businesses of transferring equity through listing on the equity markets and registration of the equity custody, builds special boards for specialized, sophisticated, and new-technology enterprises, carrying out the businesses including private equity and venture capital share transfer, and comprehensive services of stock options. The district people's governments are encouraged to provide policy support with the small and medium-sized enterprises listed on the regional equity markets.

The non-listed joint-stock companies, non-listed banking financial institutions and local financial organizations registered in this Municipality may register with the equity registration and custody institutions of this Municipality offering centralized registration and custody services. The municipal financial regulatory administration encourages the relevant organizations to adopt the data of equity registration and custody.

Article 27

The municipal financial regulatory administration will, jointly with the Shanghai branch of the central financial administration, the municipal departments such as the departments of civil affairs, planning and natural resources, and market regulation, as well as the trust registration institutions, explore the possibility and establish a mechanism for registering the trusts with real estate and equity shares as the trust property, as well as relevant supporting mechanisms.

Article 28

The Municipal People’s Government shall, in coordination with the national cyberspace administration department and the central financial regulatory administration, support China (Shanghai) Pilot Free Trade Zone and Lin-gang Special Area in exploring and formulating, under the national planning and in accordance with the principle of legality, security, and facilitation, administrative measures for cross-border flow of the data generated by the financial institutions.

Chapter IV Financial System Serving for the Real Economy

Article 29

This Municipality encourages such institutions as the financial institutions and local financial organizations to strengthen financial services for major national strategies, key areas, key regions and key industries, increase financial support for the building of a modernized industrial system, and accelerate the development of new quality productive forces, to upgrade the functional level of Shanghai as an international economic center.

Article 30

This Municipality promotes the development of the Shanghai Municipal Pilot Zone for Reform of Financial Services for Science and Technology Innovation, and establishes a financial service system that is compatible with the whole life cycle of science and technology enterprises, to upgrade the functional level of Shanghai as an international science and technology innovation center.

The Municipal People's Government and its relevant departments improve the mechanism for science and technology credit risk sharing, and implement the credit risk compensation policy for small and medium-sized science and technology enterprises. The financial institutions are encouraged to establish specialized science and technology financial institutions in this Municipality and explore differentiated management methods therefor. The science and technology enterprises are also encouraged to be listed on the stock exchanges, issue bonds, proceed on merger and acquisition and reorganization, and refinance, on both domestic and foreign multi-level capital markets.

The Municipal People's Government will, jointly with the central financial regulatory administration, build a leading area for science and technology insurance innovation in Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone. The financial institutions are encouraged to strengthen risk protection and insurance services for the science and technology enterprises and promote the development of insurance consortia in the key areas.

Article 31

The Municipal People's Government and its relevant departments support the development of areas for equity investment agglomerations. The equity investment agglomeration areas shall formulate policies and measures, improve the mechanism for performance-based awards and subsidies upon exit from investment, and support the establishment and operation of the venture capital enterprises and the funds for the secondary market of private equity.

The Municipal People's Government and its relevant departments improve the government-guided fund system, strengthen the interconnection of the funds guided by the municipal and district governments, advance the development of long-term capital and patient capital, promote the National Social Security Fund and the national master fund to invest in this Municipality, encourage "investment in the early stage, in small enterprises, and in science and technology enterprises", and support the development of a professional service platform for angel investment.

On the condition that laws and rules are complied with and risks are put under control, the commercial banks are encouraged to cooperate with the venture capital institutions and equity investment institutions to innovate the financial service models, such as interconnection between loan and external direct investment and stock option loans, and the insurance funds are guided to invest in the science and technology enterprises and such funds as the venture capital funds and equity investment funds that tend to invest in the science and technology enterprises.

Article 32

The municipal departments, such as the departments of state assets administration, economy and informatization, and science and technology, support the initiation of industrial merger and acquisition funds and promote the investment in industrial mergers and acquisitions. The industrial merger and acquisition funds are encouraged to advance absorption mergers of listed companies to improve the efficiency of industrial integration. The chain owner enterprises are encouraged to invest in mergers and acquisitions to promote upstream and downstream collaborative innovation.

The municipal financial regulatory administration will, jointly with the Shanghai branch of the central financial regulatory administration, guide banks, securities and insurance institutions, and the other financial institutions to intensify support for merger and acquisition activities.

Article 33

The Municipal People's Government promotes the reform and development of green finance, supports the enrichment of products and services in the field of green finance and transformation finance, carries out the establishment of group standards and other standards, and participates in the formulation of national or international standards. Investment and financing in climate finance and finance in biodiversity are encouraged to promote the coordinated development of the financial market and the carbon market.

The municipal financial regulatory administration shall, jointly with the municipal departments, such as the department of development and reform and the department of ecology and environment, build a service platform for green finance. The Shanghai branch of the central financial regulatory administration and the municipal departments, such as the departments of economy and informatization, transport, housing and urban-rural development, support the building of such platform, and encourage the financial institutions and green projects to enter onto the platform.

The municipal department of ecology and environment and the municipal financial regulatory administration will, jointly with the Shanghai branch of the central financial regulatory administration, implement the environmental pollution liability insurance system. The insurance institutions are encouraged to provide environmental risk reduction services for the insured enterprises.

The financial institutions are encouraged to conduct carbon accounting and environmental information disclosure, and the credit rating institutions are encouraged to incorporate environmental, social and governance factors into the credit rating system. Green financial certification institutions are to be established, and implementation of green financial certification is encouraged so as to establish a management and service system for the green and low-carbon supply chain. The financial infrastructure operating institutions and financial institutions are encouraged to provide services for and participate in the carbon market in accordance with law.

Article 34

The municipal financial regulatory administration shall, jointly with the Shanghai branch of the central financial regulatory administration and the relevant municipal departments, promote the improvement of the organization system of the multi-level inclusive financial institutions, establish the inclusive financial advisory system, and promote the establishment of financing service centers in all districts and the relevant industrial parks. The financial institutions are encouraged to enrich their loan varieties, increase the proportion of first loan borrowers, and strengthen the financing services for small and micro enterprises.

The municipal finance department will, jointly with the municipal financial regulatory administration and the Shanghai branch of the central financial regulatory administration, support the relevant districts of this Municipality to build demonstration zones for the development of the inclusive finance and optimize the service models thereof.

The municipal financial regulatory administration shall, jointly with the municipal finance department and the other relevant municipal departments, improve the policies for rewarding those granting loans to small and micro enterprises. The municipal finance department shall, jointly with the Shanghai branch of the central financial regulatory administration, the municipal financial regulatory administration, and the district people's governments, optimize the capital supplement and risk compensation mechanism of government-funded financing guarantee institutions, innovate the government-funded financing guarantee models, and expand the scale and scope of financing guarantee for small and micro enterprises.

This Municipality encourages the exploration of new financing guarantee methods to improve the financing facilitation for small and medium-sized enterprises. The Shanghai branch of the central financial regulatory department is supported in formulating and promoting inclusive financial policies for specific groups, and exploring unified monitoring over the financial statistical indicators of the specific groups.

Article 35

The municipal departments, such as the departments of development and reform and data management, and the municipal financial regulatory administration, shall improve the financing and credit service platform of this Municipality, intensify the opening, sharing, and application of public data, and support the financial institutions in improving their capacity of serving the inclusive finance.

Article 36

The municipal departments, such as the municipal financial regulatory administration and the departments of economy and informatization, state-owned assets administration, and data management, will, jointly with the Shanghai branch of the central financial regulatory administration, encourage the financial institutions to cooperate with the chain owner enterprises in promoting the research and development of supply chain financial products, develop differentiated financing products, and improve the service system. The service functions for negotiable instruments of the supply chains are encouraged to be intensified, and the application of the negotiable instruments of the supply chains is encouraged to be expanded, to facilitate the discounting of the instruments.

The municipal departments, such as those of data management, economy and informatization, science and technology, commerce, and state-owned assets administration, encourage core enterprises of the supply chains and the industrial chain related enterprises to use the unified Movables Financing Registration system and the Account Receivables Registration platform of the Credit Reference Center of the People's Bank of China, improve the transparency of the guarantors' rights, confirm the debtor-creditor relationship, and improve the financing availability for the small and medium-sized enterprises on the supply chains.

Article 37

The municipal financial regulatory administration and the relevant municipal departments will, in coordination with the Shanghai branch of the central financial regulatory administration, improve the multi-level diversified payment service system, promote the cooperation between domestic and foreign payment institutions, advance the overseas payment tools to expand their application scenarios in this Municipality, and enhance the facilitation and inclusiveness of various payment methods, to provide efficient and convenient payment services for the elderly, the foreigners visiting China, and the other relevant groups.

Article 38

The Municipal People's Government shall cooperate with the relevant State departments in improving financing in the eldercare industry, optimize the relevant fiscal and tax support policies, coordinatively promote the personal pension and the other relevant systems, and advance the coordinated development of the multi-level and multi-pillar pension insurance systems.

This Municipality encourages the financial institutions to innovate financial products for the eldercare, develops financial products to meet the diversified needs for the eldercare, optimizes the management service mechanism therefor, increases financial support for the health industry, the eldercare industry, and the silver economy, and improves the facilitation, appropriateness, and security for the elderly to obtain financial services. The nongovernmental funds are encouraged to participate in the eldercare industry to expand the scope of its funding sources.

Article 39

The Municipal People's Government promotes the development of a global fintech center and building of a global fintech industrial agglomeration highland. The leading fintech enterprises and unicorn enterprises in the digital banking, insurance technology, payment technology, securities asset management, intelligent investment consulting, financial information, and the other relevant fields are to be agglomerated. The higher education institutions, financial institutions, fintech enterprises, and industrial organizations are encouraged to jointly build platforms of innovation and research and development.

The municipal departments such as the municipal financial regulatory administration and the fiscal department will, jointly with the district people's governments, increase policy support to promote exchanges and achievement transformation in the fintech industry.

The municipal financial regulatory administration supports the relevant districts, administrative committees, and industrial parks in improving the policies and measures, such as those in respect of institutional awards, office space, land use, project funding, demand for computing power, and talent introduction, to build fintech agglomeration areas.

Article 40

The Municipal People's Government will, in coordination with the central financial regulatory administration, build fintech infrastructure, key institutions, and innovation platforms in this Municipality, encourage the financial infrastructure operating institutions in Shanghai to strengthen the empowerment of science and technology, and build a safe, reliable, open, and compatible core financial system.

The municipal financial regulatory administration will, in coordination with the other relevant municipal departments, encourage the financial institutions and fintech enterprises to participate in the construction of infrastructures such as the urban computing infrastructure, blockchain infrastructure, and public data opening infrastructure.

Article 41

Under the guidance of the central financial regulatory department, the municipal financial regulatory administration shall, jointly with the Shanghai branch of the central financial regulatory administration and the other relevant municipal departments, and through policy support, innovation incentives, project funding, and the like measures, encourage the financial infrastructure operating institutions and financial institutions to accelerate the application of the key software and hardware technologies, and promote the digital transformation of the financial industry.

The municipal financial regulatory administration will, in coordination with the Shanghai branch of the central financial regulatory administration, carry out the pilot work of relevant fintech innovation, enhance the capacity of digital supervision, and create a friendly environment for the development of the fintech industry.

Article 42

The Municipal People's Government shall, in coordination with the central financial regulatory administration, steadily promote the research and development and the application of e-CNY, establish functional platforms such as the e-CNY Innovation and Operation Center, facilitate the cross-border use of e-CNY, research on the applications of the systems such as the payment system of e-CNY-supported block chain value, and promote more projects to be included into the Multilateral Central Bank Digital Currency Bridge.

The municipal departments, such as the municipal financial regulatory administration and the departments of development and reform, finance, commerce, transport, data management, civil affairs, and education, shall, in coordination with the Shanghai branch of the central financial regulatory administration, promote the application and promotion of e-CNY and innovate and diversify the application scenarios of e-CNY.

Article 43

The municipal departments, such as the departments of data management and cyberspace administration, as well as the municipal financial regulatory administration, promote the joint development of the data factor markets and the financial markets, and under the guidance of the central financial regulatory administration, encourage the financial institutions, the financial infrastructure operating institutions, and the local financial organizations to provide financing, insurance, and other relevant services for the data assets.

Article 44

The municipal financial regulatory administration will, jointly with the Shanghai branch of the central financial regulatory administration and the other relevant municipal departments, improve the trade and shipping-related financial service systems. Financial support will be given to the development of new business forms of international trade, and financial institutions and the other relevant institutions are encouraged to enrich trade-related financial products and services, to upgrade the functional level of Shanghai as an international trade center. The financial institutions are encouraged to improve their capacity in underwriting shipping insurance and providing global services therefor, and the industrial organizations and the other organizations are encouraged to formulate model texts of shipping insurance contracts applicable to new energy and the other relevant fields, to develop shipping derivatives markets, promote the development of a digital infrastructure platform for shipping trade, and upgrade the functional level of Shanghai as an international shipping center.

Chapter V Coordination of Financial Supervision and Risk Prevention and Resolution

Article 45

This Municipality will, in accordance with the requirements of the State, establish a coordination mechanism for the local financial work. The municipal financial regulatory administration shall, in reliance on the coordination mechanism, strengthen cooperation in supervision, coordination of risk assessment and response, information sharing, and the notification and consultation of major matters with the central financial regulatory administration and its branch in Shanghai, to realize the early identification, early warning, and early exposure of and early response to the financial risks.

The municipal financial regulatory administration shall build a local information platform for financial regulation and supervision, enhance the application of science and technologies in supervision, strengthen the information collection, supervision and management, investigation, statistics, and risk monitoring of the local financial organizations and their activities, and realize the interconnection and sharing of the regulatory information with the other relevant departments.

Article 46

The Municipal People's Government establishes a coordinative joint meeting mechanism for financial stability. The municipal financial regulatory administration shall, jointly with the Shanghai branch of the central financial regulatory administration, the competent municipal departments for the relevant industries, and the judicial organs, and in reliance on the joint meeting mechanism, carry out regular risk response and assessment of such response, to maintain regional financial stability.

The prevention of and dealing with the illegal fund-raising and illegal financial activities shall be implemented in accordance with the relevant provisions of the State and this Municipality.

Where a non-financial institution involves a financial risk, the competent municipal department for the industry and the relevant district people's government shall assume the corresponding responsibilities for risk response in accordance with the relevant provisions of the State and this Municipality.

With regard to the financial risks that may affect the regional stability, the district people's governments shall, in accordance with the provisions, perform such duties as maintaining social stability.

Article 47

The Municipal People's Government shall, in coordination with the central financial regulatory administration, develop a financial risk monitoring and early warning system that is incommensurate with Shanghai’s status as an international financial center, build a financial stability guarantee system that may effectively prevent and control the systemic risks, and explore the path of integrated cross-regional, cross-market, and cross-border supervision.

The Municipal People's Government supports the central financial regulatory administration in building a transaction report database that covers the whole financial market to improve the level of monitoring and analysis of the financial market.

The Municipal People's Government will, jointly with the central financial regulatory administration, establish a rapid response mechanism for the financial market to prevent the cross-market transmission of risks among the stock market, bond market, futures market, and foreign exchange market, and maintain the stability of the financial markets.

Article 48

The municipal departments such as the municipal financial regulatory administration and the department of emergency management shall, jointly with the Shanghai branch of the central financial regulatory department, establish a financial emergency response system, monitoring and assessing domestic and foreign economic and financial risks, dynamically improving the response plans, and preventing the occurrence of and dealing with financial emergencies.

Article 49

The municipal financial regulatory administration will, jointly with the Shanghai branch of the central financial administration, establish a financial risk prevention and control mechanism with the judicial, supervisory, and the other relevant organs as well as the arbitration institutions and mediation organizations, and strengthen coordination and interaction in such aspects as information sharing, risk assessment, and response.

Article 50

This Municipality guides the relevant departments and financial institutions to retrieve and apply the credit information of the financial industry, such as the credit reports, and strengthen incentives for honesty and constraints on dishonesty in accordance with law.

The municipal departments, such as the department of development and reform and the municipal financial regulatory administration, shall, jointly with the Shanghai branch of the central financial regulatory administration, promote the application of credit information, and leverage the role of credit information in the identification, monitoring, and management of, and response to financial risks.

The municipal and district market regulatory departments shall strengthen the administration of commercial registrations such as the registration of the name of business entities and the scope of their businesses. Unless otherwise provided by laws, administrative rules, or by the State, business entities may not use the words with financial attributes in their names or descriptions of their business scope.

Article 51

The municipal financial regulatory administration will, jointly with the competent municipal departments for relevant industries and the organizations of protection of consumer rights and interests, and in coordination with the Shanghai branch of the central financial regulatory administration, improve the working mechanism for protection of the rights and interests of financial consumers, and urge the financial institutions, local financial organizations, and the other relevant organizations to fulfill their legal duties for protecting the rights and interests of financial consumers when providing financial products or services, to protect the lawful rights and interests of the financial consumers.

The municipal financial regulatory administration shall, in coordination with the Shanghai branch of the central financial administration, support the relevant industrial organizations, investor protection institutions, mediation organizations, arbitration institutions, and the other relevant organizations in improving the mechanism for financial consumers to lodge complaints and have their disputes resolved, urge the financial institutions to strengthen the proper management of financial products and services, and enhance the financial consumers’ financial literacy and awareness of risk prevention.

Chapter VI Development of the Environment for Financial Talents

Article 52

The municipal financial regulatory administration shall, jointly with the municipal department for talents management, formulate plans for developing financial talents and improve the policies and measures for the cultivation, agglomeration, and evaluation of, and incentives and service guarantees for the financial talents, which are market-oriented and meet the needs for the development of Shanghai as an international financial center.

Article 53

This Municipality encourages the higher education institutions to intensify the development of finance-related disciplines, to strengthen the intensive integration of industry, university, research, and application, to improve university-enterprise joint training mechanisms, and to accelerate the training of interdisciplinary financial talents in such fields as green finance, digital finance, asset management, and risk management.

The municipal financial regulatory administration will, jointly with the Shanghai branch of the central financial regulatory administration and the relevant municipal departments, establish training and practicing bases for the talents. The municipal departments, such as the departments of education and judicial administration, shall encourage the higher education institutions and the various legal service institutions to educate or reserve the talents in the foreign-related legal field who are familiar with the international financial rules.

The municipal financial regulatory administration shall, jointly with the Shanghai branch of the central financial regulatory administration and in accordance with the provisions of the State, bring in internationally recognized financial qualification examination and certification institutions, and support them in carrying out the relevant certification business in this Municipality.

Article 54

This Municipality encourages financial institutions and the other relevant organizations to bring in from home and abroad all kinds of high-level and urgently needed financial talents.

The relevant municipal departments and the district people's governments shall, in accordance with the provisions, provide facilitation for the in-coming high-level and urgently needed financial talents in handling the matters such as household registration and residence permit, housing, medical care, and permanent residence of foreigners.

The municipal department of human resources and social security will, jointly with the other relevant municipal departments, integrate the overseas professional qualification certificates in the financial field that are internationally recognized and urgently needed in this Municipality into the list of recognized overseas professional qualification certificates. Facilitations are provided to the eligible financial talents with the relevant overseas financial qualifications for them to register their professional qualifications or register for practice.s

Article 55

The Municipal People's Government shall formulate measures for rewarding financial talents to reward all kinds of financial talents who have made contributions to the development of Shanghai as an international financial center.

Article 56

The relevant municipal and district departments improve the mechanisms for evaluation and flow of, and providing incentive for the financial talents, and develop intermediary service institutions and the other relevant organizations providing services for locating financial talents.

Chapter VII Development of the Financial Business Environment

Article 57

This Municipality will, in coordination with the central financial regulatory administration, intensify the development of the basic database of financial credit information, promote the comprehensive collection and sharing of such information, and advance the sharing and application of the public credit information in the financial field. This Municipality promotes cross-regional sharing of public credit information and retrieval and application thereof in the Yangtze River Delta region in accordance with the laws, rules and regulations, to provide facilitation for the financing of the enterprises in the region.

Article 58

The people's courts at all levels, the arbitration institutions, the public notary institutions, the mediation organizations, and the other relevant institutions of this Municipality will, jointly with the Shanghai branch of the central financial regulatory administration, the municipal financial regulatory administration, and the other relevant departments, establish a one-stop alternative dispute resolution and enforcement mechanism for lodging complaints and proceeding on mediation, notarization, and adjudication.

The people's courts at all levels, the arbitration institutions, the public notary institutions, the mediation organizations, and the other relevant institutions of this Municipality strengthen the development of a digitalized mechanism providing diversified resolution for the financial disputes, and improve the efficiency of financial dispute resolution.

The Shanghai branch of the central financial regulatory administration will, jointly with the municipal financial regulatory administration and the other relevant departments, support the financial institutions in optimizing their internal appraisal rules, encourage them to take arbitration, mediation, notarization, and the other relevant methods to resolve their disputes, explore the possibility of using the documents issued by public notary institutions or the documents issued by people's courts that do not involve enforcement proceedings as the basis of canceling the bad debts, to promote efficient resolution of the financial disputes involving small amount of money.

Article 59

The municipal department of judicial administration shall, jointly with the Shanghai branch of the central financial regulatory administration, the municipal financial regulatory administration, and the other relevant departments, encourage the arbitration institutions in this Municipality to carry out innovation on the arbitration mechanism for the financial industry.

The arbitration institutions of this Municipality are encouraged to, in accordance with the laws, rules and regulations, formulate, implement, and timely optimize the arbitration rules that align with the prevailing international financial rules and business practices and adapt to the development of arbitration businesses, to improve the professionalism and internationalization of arbitration of the financial cases.

Article 60

The People's courts at all levels of this Municipality promote the innovation of the  mechanism for adjudicating financial cases, improve the mechanism of imposing demonstrative value on certain judgments on financial cases, representative litigation on financial disputes, and the other mechanisms for adjudicating specialized financial cases, and apply international treaties and international practices in adjudicating foreign-related civil and commercial cases in the fields of cross-border finance, offshore finance, and the other relevant fields in accordance with law. Shanghai Financial Court strengthens the development of the financial markets test case scheme.

The people's courts, people's procuratorates, and public security organs of this Municipality, at all levels, strengthen communication with the Shanghai branch of the central financial regulatory administration and the municipal financial regulatory administration to coordinately promote the connection between administrative and criminal cases as well as the supervision over the illegal administrative acts.

The people's procuratorates at all levels of this Municipality promote the innovation of the procuratorial mechanism for financial cases, and explore the possibility of developing public interest litigation and other relevant work in the financial field.

Article 61

This Municipality supports the development of the financial information service industry, develops and brings in globally competitive financial information service institutions, improves the ability of providing financial information services, builds a financial information service industry chain and an international financial information center.

Article 62

This Municipality promotes the establishment of think tanks in the fields related to the international financial center, and encourages such think tanks to intensify frontier research and improve their capacity in decision-making and consulting as well as their international influence.

Article 63

The municipal departments, such as the departments of judicial administration, finance, auditing, development and reform, and economy and informatization, formulate policies and measures to develop and bring in professional service institutions, to support the development of the professional service institutions, such as law firms, accounting firms, auditing firms, rating services, investment consulting firms, and information technology services in this Municipality, and to upgrade the level of internationalization thereof.

Article 64

The Municipal People's Government and its relevant departments shall support the relevant self-regulatory industrial organizations in the financial field in serving the development of the industry, regulating the market order, improving the self-regulatory mechanism, carrying out the development of the industrial standardization, education, and training, and participating in the research and formulation of financial standards and industrial governance rules.

The municipal financial regulatory administration shall, jointly with the Shanghai branch of the central financial regulatory administration and the other relevant departments, leverage the role of the relevant social organizations in the financial field, and build a platform for coordination, discussion, and communication of cross-industry co-governance and social participation.

The municipal financial regulatory administration shall, jointly with the Shanghai branch of the central financial administration, support the relevant industrial organizations in the financial field in formulating self-governance industrial norms jointly with the international industrial organizations, associations, or institutions.

Chapter VIII Supplementary Provision

Article 65

These Regulations shall be effective as of October 1, 2024.