A panoramic view of the Bund along the Huangpu River in Puxi and the Lujiazui Financial District in Shanghai's Pudong New Area on Aug 20, 2018. [Photo/IC]

With deepened financial reform of the China (Shanghai) Pilot Free Trade Zone (FTZ), the Shanghai International Financial Center has witnessed rapid growth in functional platforms, free trade account systems, and global reputation.

The Z/Yen Group recently released the Global Financial Center Index 25 (GFCI 25). Shanghai financial center ranked fifth for two consecutive years and shortened the gap between it and leading global financial centers including London, Hong Kong and Singapore.

Currently, Lujiazui Financial City, part of the FTZ, has gathered nine of the world’s top 10 asset management agencies, 14 foreign owned asset management companies and 99 regional headquarters of transnational corporations. Besides, 51 world famous financial institutions have set up 69 asset management agencies in Lujiazui.

Shanghai had designated 2018 as the year of business environment reform, focusing on efficiency improvement for company registration, construction permits and cross-border trade, and pioneering in innovative policies of investment, trade and finance.

In terms of financial infrastructures, the Shanghai Insurance Exchange (SHIE) launched an international reinsurance platform in August 2018. The platform, which applies the FTZ’s free trade account system, aimed to offer convenient and efficient cross-border money settlements.

In 2018, Shanghai Futures Exchange launched crude oil futures trading, establishing the first futures variety on the Chinese mainland open to overseas investors. It has won wide recognition from international investors, with the trading scale ranking in top third in the world. Furthermore, Shanghai’s international board of gold exchange has attracted 76 international members, achieving 4.9 trillion yuan ($729.55 billion) in transaction value.

Meanwhile, the financial center has put equal emphasis on policy optimization. The Shanghai Financial Court, the first specialized financial court in China, opened last year to effectively handle a rise of disputes, curb financial risks and provide a better business environment for investors from home and abroad.

The court pioneered a model judgment mechanism for securities disputes to save time in litigation, reduce cost for prosecutors, improve investors’ litigation capability, protect investors’ rights and build a legal business environment. Furthermore, the court will strengthen diversified resolution mechanisms to provide the financial center with legal safeguards.