Management of the Financial Industry in Shanghai
Management of the Financial Industry in Shanghai
On August 10, 2005, the People’s Bank of China Shanghai Head Office (PBOC Shanghai Head Office) was Offcially established, representing a major decision of the central government in perfecting China’s central bank system under the new circumstance. It would bring the macro-control function of the central bank into better play and speed up the development of Shanghai into an international financial center.
1.1 Responsibilities and Organizational Structure
The goals of setting up the PBOC Shanghai Head Office are to establish the head office as a platform for open market operation, a platform for monitoring the operation of the financial market, an important window of foreign communications, and an R&D center for financial services. The PBOC Shanghai Head Office operates under the head office of PBOC, performs the specific operational functions of some businesses of the central bank as well as some administrative functions. Its main duties include:
- Organizing and implementing the open market operation of the central bank according to the operation targets set by the head office.
- Undertaking the rediscount business of commercial banks and exclusive instrument operators in Shanghai.
- Managing the interbank market, tracking the development of the financial market, researching and guiding the financial product innovation.
- Taking charge of the assessment of regional financial stability and foreign financial safety.
- Taking care of data collection, aggregation, and analysis in the relevant financial market.
- Conducting special research in terms of the operation of monetary policy, development of the financial market, and establishment of financial centers.
- Taking charge of the financial exchanges and cooperation in relevant fields, and undertaking relevant international financial business.
- Managing part of state foreign exchange reserve and gold reserve.
- Undertaking relevant businesses of the PBOC in Shanghai.
The management functions assumed by the PBOC Shanghai Head Office include managing branches of the PBOC within the jurisdiction of the Shanghai branch, as well as managing and coordinating enterprises and institutional units under PBOC in Shanghai. The units under its direct management include the China Foreign Exchange Center, the China Anti-Money Laundering Monitoring and Analysis Center, the Data Processing Center of the PBOC, the Credit Information Service Center of the PBOC, etc. It also coordinates the management of the China UnionPay and Shanghai Gold Exchange. Also, in order to maintain the business continuity of the current Shanghai branch, the offcial titles of the Shanghai branch of the PBOC and the Shanghai Bureau of the State Administration of Foreign Exchange are retained.
1.2 The Significance of Establishing the PBOC Shanghai Head Office
The establishment has improved the macro control level of the central bank
Since the monetary policy operation of the central bank is market-based, it relies heavily on the correct judgment of the market. Currently, various financial markets gather in Shanghai. The central bank has authorized its Shanghai head office to conduct monetary policy operation, such as an open market operation, with the following three considerations. First, the operator can observe the changes of the financial market and assess the market trend in time and on the spot before coming up with the best operating strategy. Second, the operator can communicate with the market organizers and players in time to understand the market. Third, carrying out the monetary policy operation in Shanghai makes it possible for the central bank to make rapid responses to fluctuations of the market, which is conducive to the smooth market operation.
The establishment has improved the efficiency of the central bank in serving the financial market
An important duty of the PBOC is to manage the interbank currency and foreign exchange market. Relegating the function of the central bank in monitoring the financial market to its Shanghai head office is a result of the effort to better adapt to market demands. This facilitates real-time and spot observation of trading behaviors in the market, timely identification of trading activities in the market, and necessary intervention, making it possible to provide better support for the head office to analyze and decide on monetary policies.
The establishment of the PBOC Shanghai Head Office also promotes the development of the market and product innovation. First, it gradually broadens the access of various participants to the interbank market. Second, it encourages the market to continuously come up with new trading methods. Third, it encourages the market to put forward new products continuously, including various trading tools such as futures, options, forward, and swap so as to help market players avert market risk. Fourth, it continually perfects relevant rules for guiding market development.
The Establishment has boosted the development of Shanghai into an international financial center
To develop Shanghai into an international financial center is an important strategic decision made by the central government in view of the overall situation of China’s socioeconomic development. The experience of other countries indicates that the establishment of the head office of the central bank has promoted the development of an international financial center. A case in point is Frankfurt. The city replaced Berlin as the financial center of Germany after World War II. One of the reasons is that the central bank of Germany—Deutsche Bank AG—is located there. The headquarters of the European central bank was set up in Frankfurt, and the city became the center for the European single currency member countries to implement the monetary policy and conduct interbank settlement, which has further consolidated the status of Frankfurt as the international financial center in the European continent.
The establishment of the PBOC Shanghai Head Office will definitely have a similar effect on Shanghai. First, it will attract more domestic and foreign financial institutions to move their relevant business or departments to Shanghai, and allure more talents. Second, it can increase the overall influence of Shanghai’s financial market on the Asia-Pacific region, speeding up the development of Shanghai into an international financial center by means of expanded foreign financial exchanges and cooperation.
2.1 CBRC Shanghai Bureau
Established on October 15, 2003, the CBRC Shanghai Bureau (CBRCSB) is the local office of China Banking Regulatory Commission (CBRC) in Shanghai.
SBRB implements state laws and regulations concerning finance; formulates detailed rules for the implementation of supervisory laws and regulations as per the authorization of CBRC; supervises the establishment, changes, termination, and business of banking institutions and their branches within its jurisdiction; investigates and punishes financial activities violating laws and regulations; conducts the fit-and-proper test to the directors and senior management of banking institutions within its jurisdiction; and collects relevant data and information.
CBRCSB focuses on the understanding, prevention, and resolution of overall risks of various banking institutions; pays attention to the early identification, warning, and control of systematic risk; improves the effectiveness of the internal control of the banks; increases the transparency of information disclosed by various banking institutions and the performance by CBRC of its duties according to the laws.
CBRCSB seeks to protect the interests of its vast depositors and financial consumers via prudent and effective supervision; enhance market confidence through prudent and effective supervision; improve the public’s awareness of modern finance through dissemination, education, and disclosure of relevant information; crack down on financial crimes.
CBRCSB adheres to the following standards in regulation: promoting both financial stability and innovation; improving the competitiveness of China’s banking industry in international financial services; eliminating all unnecessary restrictions; encouraging fair competition while curbing disorderly competition; implementing a strict and explicit accountability system for both the supervisors and the supervisees; and utilizing all regulatory resources efficiently.
2.2 Risk-based Supervisory Approach
Risk-based supervision is a new supervisory concept based on risk identification. It was put forward in the late 1990s, along with the upsurge of worldwide M&A in the banking industry. Following the risk-based supervision framework defined in the 1104 Project of CBRC (regulatory information system of CBRC), six steps have been designed to achieve continuous supervision: knowing the supervisee, evaluating risks, planning regulatory schemes, implementing regulatory measures, conducting supervisory ratings, and implementing continuous supervision.
The major methods of risk-based supervision include supervision through market entry and exit, off-site surveillance, on-site examination, tripartite meeting, prudential meeting, meeting with board of directors, external auditors, and other regulatory institutions. The regulatory departments vary their supervisory rating systems with different types of supervisees. For instance, the CAMELs (namely, capital adequacy, asset quality, management ability, earning performance, liquidity, and market risk) rating is adopted; for banking branches, the ROCA (namely, risk management, operational controls, compliance, and asset quality) rating applies; and the SOSA (namely, strength of support assessment) rating is applied to the branches of foreign banks.
2.3 Regulation of the Shanghai Banking Industry over Recent Years
Since its establishment, CBRCSB has continually enhanced its regulating role according to the laws and regulations such as The Law of the People’s Republic of China on Banking Regulation and the Administrative License Law of the People’s Republic of China, and developed a self-disciplined and high quality supervisory team. It has also promoted supervisory innovation, implemented separate regulation and risk rating, focused on the internal control system and corporate governance in banking institutions, and further improved these institutions’ risk resilience and market competitiveness. It has also earnestly implemented the state’s macro control policy, promoted the establishment of a long-term risk management mechanism in banking institutions, realized the effective integration of credit policy and industrial policy, and guided commercial banks to handle the relationship between risk prevention and development of local economy properly. Furthermore, it has encouraged the growth of some sectors while discouraging the expansion of others, effectively dealt with complaints of consumers about banking services, and safeguarded the legitimate interests and rights of consumers. In the future, it will actively promote the reform and opening-up of Shanghai’s banking industry, attract more domestic and foreign banking institutions to gather in Shanghai, continuously promote the construction of Shanghai as an international financial center, as well as create a favorable environment for the development of Shanghai’s banking industry.
CBRCSB has continued its exploration of supervisory innovations. Since 2004, it has implemented risk rating and separate regulation of Shanghai branches of the shareholding commercial banks, and carried on the separate regulation of foreign banks. It has continued to adopt the ROCA and CAMELs rating systems, promoted consolidated supervision, and energetically monitored and analyzed the risks of principal reporting banks. It has explored the separate regulation of the branches of state-owned commercial banks, strengthened the monitoring of asset quality, introduced external audit into policy banks, implemented dynamic evaluation of senior management in the Shanghai office of the Financial Asset Management Corporation, preliminarily realized the filing management of postal saving institutions, and provided effective guidance to its institutions and business development.
CBRCSB has also encouraged banks to provide loans to small enterprises. For this, it has guided the banks toward adjusting their credit structure, and changing their growth pattern. It has also formulated the work plan designed to promote bank loans to small enterprises and has gradually established the system and mechanism for commercial banks to address financing problems facing small enterprises. At the same time, it has tightened the continuous supervision over the credit risk of the real estate industry, group (affiliated) enterprises, and large exposure in light of the new requirements and tasks of macro control.
3.1 China Securities Regulatory Commission
In China, the securities and futures market is subject to the supervision of a centralized and unified regulatory body—the China Securities Regulatory Commission (CSRC). Founded in October, 1992, the CSRC is responsible for supervising China’s securities and futures market uniformly, maintaining the order of the securities and futures market, and making sure that it runs legally. It has set up 36 local regulatory bureaus across the country to perform the regulatory duties as authorized by the CSRC.
In accordance with the provisions of The Securities Law of the People’s Republic of China and the Interim Provisions on the Administration of Futures Trade, the CSRC exercises its regulatory right over China’s securities and futures market and performs the following duties according to the law: formulating rules and regulations concerning the securities market regulation and executing the approval rights according to the law; supervising the offering, listing, trade, registration, custody, and settlement of securities; regulating the securities business of securities issuers, listed companies, securities companies, securities investment fund management companies, securities service institutions, stock exchanges, and securities registration and clearing institutions; formulating the qualification standards and code of conduct of securities practitioners according to the law, and supervising their implementation; supervising the information disclosure of securities issuing, listing, and trading according to the law; instructing and supervising the activities of securities associations; investigating and punishing activities violating the regulatory laws and administrative regulations of the security market; and other responsibilities provided by laws and administrative regulations. The CSRC may establish a regulatory cooperative mechanism with the securities regulatory institutions of other countries and regions for conducting cross-border supervision.
According to the provisions of The Securities Law of the People’s Republic of China, the CSRC performs its duties according to the law and is entitled to adopt the following measures: conducting on-site examination of securities issuers, listed companies, securities companies, securities investment fund management companies, securities service institutions, stock exchanges, and securities registration and clearing institutions; investigating suspected illegal sites; inquiring the party and enterprises and individuals involved in the case being investigated and requiring them to explain affairs related to the case being investigated; consulting and duplicating the documents concerning the case being investigated, such as the registration of property rights and communication records; consulting and duplicating the securities trading records, registration and transfer records, financial accounting documents, and other relevant documents and materials of the parties, enterprises, and individuals related to the investigated cases, as well as sealing up documents and materials that may be transferred, hidden, or destroyed; querying the capital accounts, securities accounts, and bank accounts of the parties, enterprises, and individuals related to the investigated cases. If the evidence proves that they have transferred or may have transferred or hidden the assets involved in the cases, such as illegal funds or securities, or have hidden, forged, or destroyed important proofs, it may freeze or seal it up upon the approval of the principal of the securities regulatory organization of the State Council; when investigating major illegal securities-related activities, such as manipulating the securities market or insider trading, upon the approval of the principal of the securities regulatory organization of the State Council, it may impose restriction on the parties’ securities trade, but the time limit shall be no more than 15 trading days; in the event that the case is complicated, it may be prolonged by another 15 trading days.
3.2 Overview of the CSRC Shanghai Bureau
Established in March 1993, the CSRC Shanghai Bureau (CSRCSB) is the local office of the CSRC in Shanghai. At the end of 2005, CSRCSB supervised 837 supervisees in Shanghai, including 148 listed companies, 19 securities companies, one branch of a non-homegrown securities company in Shanghai, 454 securities sales departments, ten securities service departments, 27 fund management companies, 17 branches of non-homegrown fund companies in Shanghai, 31 securities investment consulting institutions, six branches of non-homegrown securities investment consulting companies in Shanghai, 53 representative offices of foreign-funded securities institutions, 25 futures companies, and 46 sales departments of non-homegrown futures companies in Shanghai.
According to The Securities Law of the People’s Republic of China, the major duties of CSRCSB include: performing its regulatory duties concerning the securities and futures market within the jurisdiction of Shanghai in strict accordance with the authorization of the CSRC; conducting frontline regulation within its jurisdiction and completing the cooperative regulatory tasks within the CSRC system; obtaining thorough knowledge about the market within the Shanghai jurisdiction, actively disclosing risks, and taking powerful measures to deal with them; regulating the securities and futures business activities of listed companies, securities and futures enterprises, securities investment fund management companies, securities and futures service institutions within its jurisdiction; guiding and supervising the activities of the Shanghai Securities Association and the Shanghai Futures Association, investigating securities and futures cases violating the laws and regulations within its jurisdiction and performing other duties authorized by the CSRC.
In order to adapt to the development of the securities and futures regulatory work and further improve the regulatory efficiency and results, in 2004, the CSRC launched a responsibility system of jurisdiction supervision, that is, while the centralized and unified securities regulatory system still remains valid, the supervisory duties are to be linked to each post, employee, and supervisory department within the CSRC and its local branches. To implement this responsibility system, CSRCSB has taken the following measures to strengthen its routine regulatory work.
Promoting separate regulation
CSRCSB has classified listed companies, securities companies, and futures companies according to their different features and adopted different regulatory methods accordingly to strengthen their supervision.
As to the listed companies, the Department of Listed Company Supervision of CSRCSB has followed the requirements and risk classification standards of the CSRC Department of Public Offering Supervision in determining and reviewing the risk rating of listed companies. For enterprises with risks and poor performance, the supervision is strengthened and a risk precaution and exit system is implemented. Also, for companies with high-quality assets and outstanding principal businesses, they are vigorously supported so that they can become big and strong through mergers and restructuring.
The Department of Institutional Supervision of CSRCSB has classified the securities companies within its jurisdiction according to their net capital, effectiveness of corporate governance and internal control, and compliance of operations so as to implement different regulatory methods.
Strengthening on-site and off-site surveillance
The Department of Institutional Supervision and the Department of Futures Supervision of CSRCSB conduct frequent on-site examination of supervisees within its jurisdiction annually. In 2005, based on the self-checking of securities institutions, they obtained a true picture of the securities companies in Shanghai through a centralized examination. This has effectively facilitated the comprehensive improvement of securities companies. While strengthening on-site examination, SSRB has also gradually established an off-site monitoring system. A combination of on-site and off-site examination has played an active role in regulating the behavior of securities and futures companies, maintaining the fair, open, and just securities and futures market environment, and protecting the interests of investors.
Cracking down on illegal activities
In the face of numerous, complicated illegal activities in the securities market, CSRCSB has continuously adjusted its mindset, tried different channels to acquire clues, and put cases on record immediately, which has significantly improved its efficiency and effects. Also, it has actively helped the investigation bureaus of the CSRC and local offices of the CSRC with case investigation and evidence collection.
4.1 The CIRC Shanghai Bureau
Founded on April 25, 2000, the CIRC Shanghai Bureau (CIRCSB) is subject to the direct leadership and unified management of the China Insurance Regulatory Commission (CIRC). It executes its power and performs its duties in the administrative area of Shanghai as authorized by the CIRC. The basic functions of the CIRCSB are as follows: implementing relevant state laws, regulations, and policies, and regulating the operation of insurance institutions in its jurisdiction as authorized by the CIRC; investigating and punishing illegal insurance activities within its jurisdiction according to law, maintaining the order of the insurance market, and safeguarding the interests of insurants according to law; monitoring and preventing insurance risks within its jurisdiction and reporting major cases to the CIRC immediately; and engaging in other affairs as assigned by the CIRC.
The regulatory duties of CIRCSB are as follows:
- To initially examine or examine and approve the establishment, cancellation, and changes of the branches of Chinese or foreign-funded insurance companies, insurance agencies, insurance loss adjusters companies, and other insurance intermediaries.
- To initially examine the establishment, merger, extension, cancellation, and changes of representative offices of foreign insurance institutions in Shanghai.
- To take charge of the issuance and replacement of licenses for insurance branches and agencies and release bulletins to the public.
- To take charge of the qualification censorship and license management of the sideline agents within its jurisdiction.
- To supervise the examination affairs concerning the qualification test of intermediate practitioners within its jurisdiction and authorize the Shanghai Insurance Association to issue and manage the qualification certificate of insurance intermediate practitioners within its jurisdiction.
- To take charge of the fit-and-proper test of the senior management of the branches of insurance companies within its jurisdiction and the principals of the representative offices of foreign insurance institutions.
- To preliminarily examine the qualifications of senior management of the insurance agencies within its jurisdiction.
- To manage the insurance product filing and registration.
- To conduct on-site examination of the branches of Chinese or foreign funded insurance companies, insurance agencies, representative offices of foreign insurance institutions in Shanghai, and sideline insurance agencies.
- To carry out on-site investigation into material complaints and prosecution cases concerning the interests of the insurance market, insurance companies, insurance practitioners, or policy holders, and mete out administrative punishment of illegal activities, as well as hand over the cases that have constituted crimes to the judicial system for criminal investigation.
- To investigate and prosecute insurance institutions established illegally as well as illegal insurance business and insurance intermediate business activities.
- To conduct routine inspection and annual inspection of the representative offices of foreign insurance institutions in Shanghai.
- To conduct Off-site surveillance of the branches of Chinese or foreign-funded insurance companies, insurance brokerage companies, insurance agencies, insurance loss adjustors institutions, and representative offices of foreign insurance institutions in Shanghai, analyze statistically the insurance compliance forms and reports submitted by each insurance institution periodically, and compile Off-site surveillance reports which are to be submitted to the CIRC.
- To conduct annual inspection and registration of the branches of approved insurance companies, insurance brokerage companies, insurance loss adjusters companies, as well as insurance agencies and their branches.
- To supervise the market behavior of insurance institutions and insurance practitioners in Shanghai.
- To address complaints concerning insurance institutions and practitioners within its jurisdiction and those forwarded by the CIRC.
- To periodically analyze problems or issues of overall or potential importance as revealed in complaints received.
- To guide and manage the insurance industry societies or associations in Shanghai.
- To punish administratively the illegal activities of the branches of Chinese or foreign-funded insurance companies, insurance agencies, and insurance sideline agencies.
- To mete out administrative punishment to insurance practitioners in violation of laws or regulations in Shanghai.
- To undertake other affairs assigned by the CIRC.
4.2 The Shanghai Insurance Regulation in Recent Years
In recent years, especially in 2005, focused efforts have been made in Shanghai to strengthen proactive supervision, cooperative supervision, information supervision, and long-term supervision. This has played an important role in creating a favorable development environment and guiding the standardization of the insurance industry.
A motor vehicle joint information platform was launched on April 1, 2004. This platform implements a floating system for automobile third-party compulsory liability insurance rate that is linked with the safety record of drivers with a view to improving urban traffic management.
With effect from April 1, 2003, all insurance companies and insurance intermediaries in Shanghai are required to implement the unified invoice system for insurance intermediate service, and the previous self-made vouchers were abolished. The implementation of this system has effectively standardized the internal management and market behavior of insurance institutions, vigorously promoted the taxation bodies to perfect the taxation management mechanism, and walled up the hole of tax evasion.
In order to adapt to the trend of adopting information technology in the insurance industry, CIRCSB has developed the off-site surveillance information system for the insurance industry. The system is able to report on all subjects and automatically generate various regulatory forms. It was put into use between 2003 and 2004 and had greatly improved the regulatory efficiency and the authenticity of the statistical data.
In 2004, the Shanghai insurance agent credit information was incorporated into the Shanghai Social Joint Credit Information System. So far, this system has collected the credit information of 95% of all insurance agents in Shanghai. It is the first industrial credit information system open to the public.
The People’s Mediation Committee of the Shanghai Insurance Association has been established. This committee consists of experts in law, medicine, and insurance. Its establishment has contributed to industrial self-discipline, widened the channel for handling disputes over insurance contracts, strengthened the client services of insurance companies, and galvanized the companies to improve their internal management and client services.
According to the unified arrangement of the CIRC, in 2004, starting with the manual policy issuance of aviation personal accident insurance, CIRCSB has gradually strengthened the management of the manual issuance of insurance policies. Currently, all businesses with insurance period of over 30 days are handled by computer and controlled in real time. Also, in terms of the manual issuance of policies within 30 days, some companies are taking measures to develop a new policy issuance management system by connecting to the ticketing system for Shanghai long-distance passenger transportation or use e-commerce and SMS in developing new underwriting methods.
In 2005, CIRCSB investigated and punished Shanghai Fanyi Consulting Co. Ltd. and Hyde Financial Group, which engaged in selling offshore policies. Also, it also actively encouraged domestic insurance companies to develop substitutes to fill in the market vacuum.
On August 5, 2002, the Shanghai financial work conference was convened at the Shanghai Exhibition Center. The conference defined the objective of building Shanghai into an international financial center and put forward ten tasks for the near future. It was the first municipal financial work conference held since China initiated reform and opening-up in the late 1970s. On September 10 of the same year, the Shanghai Financial Services Office was established. As a special functional department of the municipal government, the office has enhanced cooperation among the various governmental departments and improved the quality of public services. Besides, the Huangpu District established the Office of Modern Service Industry Development, and the Pudong New Area set up the Financial Services Office. All these measures have played an important role in accelerating the introduction and cultivation of financial institutions, strengthening the public services of the government, promoting the CBD construction, and further optimizing the financial environment of Shanghai.
The Shanghai Financial Services Office takes charge of financial management and services. Its major responsibilities include:
- Working closely with the central regulatory institution to thoroughly implement state guidelines, policies, laws, and regulations concerning finance, as well as proposing and organizing the implementation of work opinions based on the real situation of Shanghai.
- Preparing and revising mid- and long-term plans and work guidelines for the development of the financial industry according the overall plan of national economic and social development of Shanghai.
- Studying and analyzing the macro financial situation, state financial policy, and the financial operation of Shanghai, and putting forward proposals and policy suggestions on improving the financial development environment and enhancing services.
- Assisting the central regulatory institution and relevant municipal departments in straightening out the financial order, coordinating and handling financial risk prevention and resolution, enhancing the building of Shanghai’s social credit system, maintaining social stability, and promoting the building of the financial security region.
- Exercising the macro management of local financial institutions, and coordinating the optimized allocation of local financial resources.
- Handling communication and information sharing between local governments and central financial institutions and their offices Shanghai.
- Promoting the reform, innovation, and opening-up of the Shanghai financial industry.
- Cooperating with regulatory institutions and relevant departments to promote the establishment of a modern corporate governance system within listed companies and improve their asset quality.
- Undertaking other affairs as assigned by the municipal government.
The Shanghai Financial Services Office has worked hard to bring the active role of local governments into full play in support of the national financial regulatory in its effort to strengthen financial supervision, rectify the financial market, and improve financial risk prevention, resolution, and disposal. It has established the “3+2” joint meeting system involving the Financial Services Office, the PBOC Shanghai Head Office, as well as three financial regulatory departments. An instant coordination and disposal mechanism for dealing with major events has been put in place. All these are effective concrete actions taken to enable the participation of local governments in financial supervision and management.
To encourage financial innovation, the Shanghai Municipal Government has rewarded the fuel oil futures of Shanghai Futures Exchange, the buyout repurchase of national debt of the Shanghai Stock Exchange, the Au T+D of the Shanghai Gold Exchange, the PayEasy of China UnionPay, and the interbank foreign exchange market of the China Foreign Exchange Trade Center in 2004. Also, the municipal government is studying detailed methods and rules for rewarding major financial innovations. For instance, the Financial Development Fund of Pudong New Area is under consideration
Aiming to build an international financial center, the municipal government has always attached great importance to the effort toward creating a sound environment for the development of financial institutions through improving its policies, laws, credit, and measures to prevent loss and crime. In view of the prominent problems existing in the operation of new financial institutions in Shanghai, the financial services office has strengthened its coordination with relevant municipal functional departments, defined the procedures of policy and opinion implementation, unified work standards, and provided convenient services for financial institutions in terms of business registration, employee household registration, vehicle purchase, and reduction or exemption of real estate transaction fees. Additionally, it has enhanced the follow-up services to financial institutions located in Shanghai. It has communicated with regulatory departments periodically to keep itself updated in time on the establishment and changes of financial institutions. At the same time, by keeping in touch with the offices of Shanghai in other provinces and cities and the branches of Shanghai’s financial institutions in other provinces and cities, it has kept abreast of the relevant financial policies of the CPC Central Committee and other provinces and cities in time, which in turn has contributed to the development of the local financial industry.
Lastly, the municipal and district governments have joined hands in promoting the building of Lujiazui Finance & Trade Zone. As a result, the software and hardware conditions of the zone have been gradually perfected. The municipal government has set up a leading team for bankcard development, formulated the Shanghai Bankcard Development Plan, and vigorously promoted the rapid development of the bankcard industry and the building of the Bankcard Industrial Park. Shanghai has taken the lead in establishing an enterprise credit system and an individual credit system across the country. Efforts have also been made to set up the financial industrial association, develop the financial supporting industry, strengthen coordinated government services so as to create a favorable development environment for building Shanghai into an international financial center.
"Management of the Financial Industry in Shanghai." Shanghai Finance. . Encyclopedia.com. (November 18, 2018). https://www.encyclopedia.com/books/international-magazines/management-financial-industry-shanghai
"Management of the Financial Industry in Shanghai." Shanghai Finance. . Retrieved November 18, 2018 from Encyclopedia.com: https://www.encyclopedia.com/books/international-magazines/management-financial-industry-shanghai
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