Center

Shanghai's financial center ambition still alive

By Chen Weihua (China Daily)
Updated: 2007-02-14 13:58

A bill to be submitted to the National People's Congress (NPC) session early next month is set to refute claims that Shanghai has dropped its international financial center ambition.

The bill will call on the NPC, China's top legislature, to grant special lawmaking power to Shanghai to support development of the city's finance industry.

"Special legislation for Shanghai's international financial center has become a concern," Zhu Ronglin, a local congress deputy and professor at East China Normal University, told media.

Zhu's call for special laws governing Shanghai's international financial center was the No 1 bill of the city's congress session that concluded a week ago.

Deputies at previous years' congress sessions also raised the issue, urging privileges for Shanghai by learning from the experiences of other international financial centers such as London, Hong Kong and New York.

Many of these financial centers had special legislative power during their early development stage, according to analysts.

"Why do foreign banks have to choose Shanghai if there is no policy difference with Beijing, Tianjin and Shenzhen," an unidentified local congress deputy was quoted as saying by China Business Journal.

According to analysts, special legislative power would give Shanghai a number of privileges, such as in the area of the fully convertible renminbi.

This, according to Chen Bulin of Shanghai Guotai Jun'an Securities, would have a huge impact on Shanghai and the Yangtze River Delta. It would make Shanghai an international financial center for the renminbi business.

The bill to be submitted to the NPC is just another demonstration that Shanghai is still determined to build an international financial center.

Last December, Shanghai announced its 11th Five-Year Plan for building an international financial center.

Premier Wen Jiabao, in a national financial conference last month, also urged pushing forward Shanghai's international financial center program.