Shanghai has unveiled an ambitious action plan to position itself as a global Fintech hub, with 31 measures aimed at upgrading the city’s financial technology landscape over the next three to five years.
The action plan, released by the municipal government on Friday, outlines a comprehensive strategy to enhance Shanghai’s role as an international fintech center by leveraging advanced technologies and fostering innovation.
Key to this plan is a focus on research and development in foundational technologies such as artificial intelligence, blockchain, privacy computing, and quantum computing.
The city aims to integrate these technologies to boost fintech innovation and infrastructure, laying the groundwork for a world-leading fintech ecosystem.
This includes promoting the digital transformation of Shanghai’s financial infrastructure by developing a large financial corpus model database, driven by enhanced computing power and blockchain technology.
Shanghai will also capitalize on its unique position as a financial hub, particularly through the China (Shanghai) Pilot Free Trade Zone and the Lin-gang Special Area.
The action plan suggests implementing a negative list approach for cross-border data flow in the financial sector, enabling more seamless and secure data transfers that support fintech development.
Furthermore, the plan emphasizes the need for innovative applications of the digital yuan (e-CNY) in financial markets, cross-border payments, and trade digitalization, particularly in shipping.
The plan also prioritizes the growth of fintech enterprises in Shanghai. It seeks to encourage the establishment of innovative entities and create high-quality spaces to foster fintech clusters.
These efforts are expected to accelerate the agglomeration of fintech companies and contribute to the overall modernization of the city’s financial sector.
Ge Ping, deputy director of the Shanghai financial work bureau, emphasized that the action plan is designed to harness the multiplier effect of fintech, spurring further innovation in the financial industry.
The goal is to ensure that the development of Shanghai’s financial sector is both robust and secure, enhancing the city’s global competitiveness as a financial center, he said at a press briefing on Friday.
In a further move to strengthen the fintech ecosystem, He Weili, deputy head of the technology supervision department of Shanghai’s financial regulatory bureau, announced that the city plans to establish the first batch of 10 technology-focused bank branches this year.
These specialized branches will offer comprehensive financial services to technology-driven enterprises, including fintech firms, ensuring they have the support needed to thrive in a rapidly evolving financial landscape.