The signing ceremony for a new Lujiazui Fintech Industrial Park project is held on June 20 in Shanghai. [Photo/shobserver.com]

The Embankment Square Base of Lujiazui Fintech Industrial Park will be built in Lujiazui Financial City under a tripartite agreement signed by the Lujiazui Administration Bureau of the China (Shanghai) Pilot Free Trade Zone, Plug and Play (PNP) China, and Lujiazui Embankment Square on June 20.

PNP is one of the largest technology incubators and one of the world's leading VC investment institutions based in Silicon Valley. It has invested in world-renowned innovative companies such as Google and eBay.

The fintech industrial base is planned with an area of over 2,400 square meters. It is expected to officially launch in June next year.

It will serve as a regional fintech incubation headquarters for PNP China to attract international advanced fintech companies and outstanding technical teams.

According to the agreement, the parties will make use of their respective advantages to create an environment for the healthy development of the fintech industry.

Lujiazui Financial City will rely on its complete financial market system, infrastructure, and financial environment to introduce the application needs and important application scenarios of licensed financial institutions in the region.

PNP China will develop a sound operation and incubation system for the base, as well as help settled enterprises to connect with upstream and downstream customers by carrying out incubation activities. 

Lujiazui Embankment Square, which was developed by China Resources Land and Shanghai Land (Group) Co, will provide business environment support for fintech companies that have settled in the base. 

Shannon Technology is one of the 14 fintech startups participating in the first phase of Lujiazui fintech accelerator camp. It is an artificial intelligence company involved in the financial sector, which helps financial institutions avoid and control risks by using artificial intelligence algorithms to analyze, extract, and integrate massive financial information.

The company is looking for office space in Lujiazui where its target customers are concentrated. When hearing that Lujiazui is building the fintech industrial base, Bu Hechun, one of the company's partners was quite happy.

"If we can settle in the base, the problem of office space will be solved and it will be convenient to enjoy relevant government policies and services," he said.

Guo Zhiying, deputy director of the Shanghai FTZ's Lujiazui Administration Bureau, said at the signing ceremony that in the future, Lujiazui will seek support from regulatory authorities to encourage and guide the application of artificial intelligence, blockchain, and cloud computing in the financial sector, as well as strive for the implementation of financial innovation products and technology applications.

In addition, it will also launch incubators and accelerators in various financial technology segments, as well as introduce leading edge technologies from internationally renowned research institutes to better promote the integration of financial institutions and fintech enterprises in application scenarios and create the world's best fintech ecosystem.

"In the future, Lujiazui Financial City will establish a model of co-construction and co-governance with government guidance and market participation, helping various licensed financial institutions to publish specific application scenarios that require technological empowerment. It will promote fintech enterprises to meet the scientific and technological demands of financial institutions, as well as construct a new fintech ecosystem that combines scenario triggering and technology driving," said Yuan Yefeng,  director of the finance and shipping department with the Lujiazui Administration Bureau.

Shanghai's financial district, Lujiazui in Pudong, is seen at night on July 18, 2018. [Photo/IC] 

Lujiazui Financial City has been promoting the orderly development of the fintech industry in recent years.

As early as 2014, the Lujiazui Administration Bureau released the 1.0 version of the "Lujiazui Nine," nine coordinated measures to support all types of financial operations. It also established the Liangyou Base of Lujiazui Fintech Industrial Park, aiming to build China's first incubator and accelerator in the vertical field of financial science and technology.

As a result, the base has gathered more than 130 fintech companies and successfully incubated over ten companies.

In May of last year, the bureau launched the 2.0 version of the "Lujiazui Nine" to support the development of fintech enterprises based on their specific demands in nine aspects, including application scenarios, incubation and investment, professional services, technology research and development, risk prevention, as well as exhibition and exchange. 

To date, Lujiazui Financial City has cultivated a number of outstanding fintech enterprises.

The Bank of China unveiled its fintech subsidiary at the 11th Lujiazui Forum held on June 13. It is the second fintech company launched by a State-owned bank in Lujiazui, following CCB Fintech Co, a subsidiary of China Construction Bank.

The fintech subsidiary established by the country's first commercial bank has provided system services and big data risk control services based on artificial intelligence technology for more than 300 small and medium-sized banks.

In addition, IceKredit, which is rated by KPMG as one of China's top 50 fintech companies, has also settled in Lujiazui.  

A joint venture between Vanguard Group, the world's second largest asset management company, and China's fintech giant Ant Financial Services Group was recently set up in Lujiazui.