Recently, Associate Professor Guoyan HUANG from the School of Finance and Business (SFB) at Shanghai Normal University (SHNU) shared her insights in an exclusive interview with China News Service on the topic of advancing the construction of Shanghai International Financial Center with a systematic approach. She emphasized that as a core hub for financial reform and opening-up, Shanghai should pursue institutional opening at a broader scale, across wider domains, and at a higher level. This approach aims to enhance the global influence of China's financial system while positioning Shanghai as both a model for financial reform and a driving force for strengthening its competitiveness as an international financial center.
As one of the key functions of global cities, financial centers like New York and London have leveraged their competitive edge in finance and professional services to extend their global influence across various sectors. The evolution of major financial centers demonstrates that the expansion of financial functions is closely intertwined with the development of international financial centers. Leading financial centers continuously refine their capabilities in price discovery, risk management, and global financial resource allocation, further solidifying their status as top-tier international financial hubs.
Associate Professor HUANG pointed out that Shanghai should actively participate in global financial governance and competition for financial resources on behalf of China, which are key indicators of a world-class international financial center's competitiveness. Shanghai should capitalize on China's rise and the economic and technological strengths of the city's "Five Centers" to transform these late-mover advantages into increased financial competitiveness and global influence, ultimately elevating its status as a global city.
How can Shanghai further enhance its role as an international financial center? How can its development be advanced in a systematic manner?
According to Associate Professor HUANG, Shanghai should adopt a holistic and system-oriented approach instead of simply replicating the developmental paths of New York or London. The city's international financial center construction must be framed within a dynamic "nation-city-institution-market" structure to ensure coordinated progress. It is essential to align with national strategies, implement Shanghai's specific policies, and fo Recently, Associate Professor Guoyan HUANG from the School of Finance and Business (SFB) at Shanghai Normal University (SHNU) shared her insights in an exclusive interview with China News Service on the topic of advancing the construction of Shanghai International Financial Center with a systematic approach. She emphasized that as a core hub for financial reform and opening-up, Shanghai should pursue institutional opening at a broader scale, across wider domains, and at a higher level. This approach aims to enhance the global influence of China's financial system while positioning Shanghai as both a model for financial reform and a driving force for strengthening its competitiveness as an international financial center.
As one of the key functions of global cities, financial centers like New York and London have leveraged their competitive edge in finance and professional services to extend their global influence across various sectors. The evolution of major financial centers demonstrates that the expansion of financial functions is closely intertwined with the development of international financial centers. Leading financial centers continuously refine their capabilities in price discovery, risk management, and global financial resource allocation, further solidifying their status as top-tier international financial hubs.
Associate Professor HUANG pointed out that Shanghai should actively participate in global financial governance and competition for financial resources on behalf of China, which are key indicators of a world-class international financial center's competitiveness. Shanghai should capitalize on China's rise and the economic and technological strengths of the city's "Five Centers" to transform these late-mover advantages into increased financial competitiveness and global influence, ultimately elevating its status as a global city. ster synergy among financial institutions. A well-structured division of labor and collaboration within the financial sector will enable high-quality financial services for businesses and other market participants, further shaping a world-class financial ecosystem.
Moreover, advancing Shanghai's status as an international financial center requires a broad, strategic vision and high-level coordination. The city should consolidate foundations, leverage strengths, and shore up areas of weakness. By promoting synergy among its "Five Centers", Shanghai can foster new competitive edge in global finance. For instance, leveraging the development of a pilot zone for financial innovation in science and technology, Shanghai aims to establish itself as a hub for equity investment and patient capital, as well as an international model for capital market openness. Additionally, through integration with its shipping center, the city is exploring the development of an international insurance, reinsurance, and shipping finance hub.
"Providing financial services to the real economy is the defining principle of Shanghai International Financial Center development and the cornerstone of its competitiveness and influence," said Associate Professor HUANG. The development of international financial centers should align with emerging economic trends, such as digitalization, technological innovation, green finance, and an aging population, while ensuring a coordinated approach across five core focus areas. More importantly, the integration of finance, technology, digital intelligence, and sustainability will create new advantages and a distinctive global identity for Shanghai as a financial center.
Associate Professor HUANG noted that "at its core, Shanghai International Financial Center development should enhance the free flow of international capital, improve efficiency, and strengthen risk management and resource allocation capabilities." While ensuring financial security and payment system stability, it is necessary that Shanghai seek breakthroughs by advancing initiatives such as the Global Renminbi Asset Management and Risk Management Center, the International Investment and Financing Center, and the Offshore Renminbi Center. These efforts will enhance the city's role in global financial resource allocation, attracting more multinational financial headquarters, specialized financial institutions, and top-tier international financial talents.
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