Press Release for Media Briefing of the Shanghai Municipal Government on June 11, 2020
June 12, 2020
The Information Office of Shanghai Municipality held a press conference on the afternoon of June 11, during which Xie Dong, director of the Shanghai Financial Work Bureau, introduced the preparations for the 12th Lujiazui Forum. Sun Hui, deputy director of the Shanghai headquarters of the People’s Bank of China, Zhou Wenjie, deputy director of the Shanghai Supervision Bureau of the China Banking and Insurance Regulatory Commission, and Li Gang, deputy director of the General Office of the China Securities Regulatory Commission, also attended the press conference and answered questions from reporters.
Since 2008, the Lujiazui Forum, which is co-organized by the Shanghai government and the country’s financial regulators, has been successfully held for 11 years. The 12th Lujiazui Forum will be held on June 18-19, 2020. The previous versions have been highly valued by all parties and witnessed the growth and progress of Shanghai international financial center. Each forum focused on major economic and financial issues at the time, and invited guests from the Chinese and foreign economic and financial circles to discuss, share ideas and build consensus, contributing wisdom and strength to the construction of Shanghai international financial center, China’s economic and financial reform and opening-up, and the promotion of global economic and financial governance. With the strong support of the national financial regulators and the joint efforts of all parties, the Lujiazui Forum has become an international platform for high-end dialogue with wide influence. It is not only an iconic symbol of Shanghai, but also a shining platform for China’s financial industry players to enter the world stage.
I. The theme and topics of this year’s forum
2020 is the year when Shanghai has been basically built as an “international financial center compatible with the country’s economic strength and the international status of the renminbi.” It is of great significance for the sustained development of Shanghai international financial center. Therefore, the theme of this year’s forum is “Shanghai International Financial Center 2020: New Starting Point, New Mission, New Vision”, which aims to sort out the experience, achievements and weakness in the construction of Shanghai international financial center at this critical time point in 2020 through brainstorming and learning from others. The forum is set to provide new ideas for the next-round goals and paths.
This year’s forum has seven plenary sessions and the “Night Talk by Huangpu River” panel discussion. Eight topics will cover current hot issues in the economic and financial fields, including Shanghai International Financial Center 2020: New Starting Point, New Mission, New Vision; Strengthening Financial Cooperation Between Shanghai and Singapore; Global Economic and Financial Landscape: Growth, Uncertainties, Openness and Cooperation; First Anniversary of STAR Board; Further Opening up of Financial Markets and Global Asset Management Center Development; Outlook on RMB Internationalization; Empowering the Financial Sector for High Quality Development through Fintech Center Development; and Judicial Environment for Finance and International Financial Center Development.
II. The preparations for the forum
This forum is co-organized by the Shanghai Municipal Government and the People’s Bank of China, China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission. Chairman of the China Securities Regulatory Commission Yi Huiman and Shanghai Acting Mayor Gong Zheng serve as the joint rotating chairmen. As the host city and host of the forum, the Shanghai Municipal Government attaches great importance to the preparations for the forum. Thanks to the joint efforts of relevant parties, the preparations for the forum are progressing smoothly.
In this forum, more than 60 speakers are invited to participate in discussions, and basically all of them have confirmed their attendance. In terms of government and relevant departments, officials from the People’s Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange, Supreme People’s Court, Shanghai Municipal People’s Government, as well as the City of London, Singapore Monetary Authority, Singapore High Court and other courts, Abu Dhabi International Financial Center, Dubai International Financial Center Court and other government and relevant departments have confirmed to participate in the forum and deliver speeches. In terms of international financial organizations, President of the New Development Bank has confirmed to deliver a speech. In terms of financial markets, officials from the London Stock Exchange, Shanghai Stock Exchange and Singapore Stock Exchange have confirmed to participate in the forum and make a speech. In terms of financial institutions, executives from China Investment Corporation, Bank of China, Bank of Communications, PICC, UnionPay International, Shanghai Pudong Development Bank, Bank of Shanghai, China Pacific Insurance, Ping An Group, Ant Financial, JP Morgan Chase, AXA Group, Allianz Group, Neuberger Berman, Oak Capital, Deloitte and Moody’s have confirmed participation in the forum and will speak.
The forum will also host signing ceremonies for a series of activities and cooperation projects. For example, the Shanghai Municipal Government will sign a joint work plan with the Export-Import Bank of China to “fight epidemic, support enterprises and stabilize foreign trade” to collaborate in support of foreign trade, foreign investment, manufacturing, strategic emerging industries, interconnected infrastructure construction, traditional infrastructure construction, new infrastructure and other key areas. As another example, the Shanghai Municipal Government will also sign a strategic cooperation agreement with Bank of China to strengthen cooperation in infrastructure construction, industrial development, asset management, information exchange and other fields to achieve mutual benefit and common development.
III. The characteristics of the forum
This year’s forum will feature many unique and innovative elements in the timing, content forms and discussion topics.
First, in terms of timing, the construction of Shanghai international financial center, which started in the 1990s, entered a crucial year. After 30 years of hard work, it has made important progress and the city has gradually become a new important force in world financial governance. Shanghai has become one of the cities with the most complete financial factor markets and infrastructure in the world, as it is home to national financial factor markets and infrastructure of stocks, bonds, futures, currencies, bills, foreign exchange, gold, insurance, and trust, with annual turnover exceeding 1,900 trillion yuan and direct financing exceeding 12 trillion yuan. Shanghai has become one of the most important gathering places for Chinese and foreign financial institutions, with more than 1,600 licensed financial institutions in various types, of which foreign-funded financial institutions account for more than 30%. Shanghai has become one of the cities with the richest financial products and the highest degree of financial openness in China. The functions of free trade accounts have been continuously expanded. Crude oil futures, Shanghai-Hong Kong Stock Connect, Shanghai-London Stock Connect, Bond Connect, International Gold Board, Treasuries futures and other major financial products were successfully launched, and cross-border yuan business, investment-loan programs, cross-border ETFs and other business innovations emerged one after another. Shanghai has become one of the cities with the best financial development environment in China. It has taken the lead in setting up a financial court in the country, promulgating the “Regulations on Promoting the Construction of International Financial Center in Shanghai” and the “Regulations on Local Financial Supervision and Administration in Shanghai”, while continuously improving credit and consumer protection systems. The number of financial professionals in Shanghai has exceeded 470,000, and construction of financial agglomeration areas has achieved remarkable results. In the latest Global Financial Centers Index (GFCI) ranking, Shanghai ranked fourth. In the next step, Shanghai will closely follow the 14th Five-Year Plan to enhance the capacity planning of Shanghai international financial center and better leverage the role of financial services in the high-quality economic and social development.
The theme of this year’s forum is also focused on Shanghai International Financial Center 2020. It is believed that national financial authorities, world-renowned financiers, experts and scholars will have extensive and in-depth discussions on the construction of Shanghai international financial center, gathering global strength and wisdom to provide suggestions for its development in 2020 and after 2020.
Secondly, the agenda design is more in line with the current economic and financial situations. This forum is an important international economic and financial forum after the recent national Two Sessions late last month. In the design of the forum’s agenda, it actively implements the spirit of the Two Sessions, and focuses more on financial services to serve the real economy and financial reform and innovation. In terms of serving the real economy, authorities are currently studying a new round of Shanghai’s financial policies for stabilizing enterprises and ensuring employment, and will further focus on incentivizing financial institutions to increase credit support, lower the overall loan and financing costs for small and micro enterprises, and encourage financial institutions to renew the loans or strengthen policy-driven financing guarantees, thus forming a new round of support measures with great strength, practical measures and wide coverage. In terms of financial reform and innovation, it will continue to promote the “three major tasks”, further accelerate the opening-up of the financial industry to the outside world, vigorously develop financial technology, and continue to launch more innovative, pioneering, and exemplary financial reform and innovation measures. The topics of this year’s forum are also mainly focused on these two aspects, including the science and technology innovation board, RMB internationalization, financial reform and opening-up, financial technology, and the construction of asset management centers, which are closely related to financial development and innovation. The forum will also provide ample room for discussions in the fields of leveraging financial policies to make a big push to ensure “six priorities” and stability in six areas, effectively increasing financial support for SMEs and key industries, and promoting economic recovery as well as other important topics.
Thirdly, as for the forum’s format, there are various ways of participation and sharing. Due to the epidemic and based on the experience of holding the previous 11 forums, the plan for organizing the forum this year has been adjusted accordingly, and some new approaches have been used to invite guests and cover the event. In terms of guests, organizers will use the online video connection for the first time to interact with guests outside the forum, and the proportion of foreign guests will reach a record high. In terms of publicity, during the forum, domestic and foreign media will comprehensively boost coverage of this forum through various channels such as TV, Internet, newspapers and magazines. Compared with previous years, this year’s forum will especially feature live webcasts. China Business News, Dragon TV and ICS will broadcast the opening ceremony and Plenary Session 1, and Shanghai Fabu will broadcast the opening ceremony and Plenary Session 1 on Weibo platform. Xinhua news agency, CCTV, Yicai and Jiemian will have live webcasts for the whole forum on their applications. Eastday.com will have live broadcast with texts and graphics.
The new era puts forward new requirements and new challenges to the construction of Shanghai international financial center, as well as new missions and responsibilities. Shanghai will take an “international financial center compatible with the country’s economic strength and the international status of the renminbi” as a new starting point, always adhere to a market-based, internationalized, and rule-of-law approach, and continue to advance the construction of the financial center.