The city of Shanghai has set ambitious goals to solidify its position as a premier global asset management hub, with a new policy framework aimed at significantly expanding its financial sector.
A recently released official document outlines the city's strategy to deepen the construction of Shanghai as a global asset management center. The core objective is to achieve total assets under management (AUM) in Shanghai reaching 55 trillion yuan by 2030, which would represent approximately one-third of the national total.
Building a Robust Financial Market Foundation
The plan emphasizes strengthening the underlying financial market infrastructure to support diverse asset allocation. This includes initiatives to increase the supply of high-quality equity assets by supporting listings and mergers of technology-focused companies with strong innovation credentials. The strategy also aims to expand the scale of various bond types, including free trade offshore bonds, jade orchid bonds, panda bonds, and science and innovation bonds. Furthermore, Shanghai seeks to become the preferred location for the issuance and trading of Real Estate Investment Trusts (REITs) in China.
Efforts will be made to enhance risk management tools, such as accelerating the launch of liquefied natural gas (LNG) futures and options and preparing for electricity and computing power futures. The goal is to steadily expand the product lines for shipping index futures and develop new futures varieties that represent the development direction of new quality productive forces. The plan also supports the listing of products like the STAR 50, Shenzhen 100, and ChiNext stock index futures and options, as well as treasury bond options.
Fostering a High-Quality Asset Management Ecosystem
The strategy calls for building a distinctive and comprehensive system of asset management institutions. This involves supporting various entities, including bank wealth management subsidiaries, trust companies, securities asset managers, public funds, insurance asset managers, and private equity/venture capital firms, to enhance their specialized capabilities and service offerings. A key focus is cultivating asset management institutions that consciously practice rational, value-based, and long-term investment philosophies, and fostering a market environment conducive to "long-term capital making long-term investments."
The city plans to attract and nurture leading institutions across different asset management segments, including those from countries and regions involved in the Belt and Road Initiative. It will also encourage qualified foreign asset management institutions to leverage their advantages and explore unique development paths in Shanghai.
Expanding Product Offerings and Aligning with Key National Priorities
The plan aims to enrich asset management products and services, aligning with major national financial themes. It encourages asset managers to support the development of new quality productive forces and guide long-term capital from sources like social security funds and insurance funds to participate in the full lifecycle development of technology companies.
For green transition, the strategy involves building a standard system for green assets and encouraging the development of products like carbon-neutral funds and climate-themed derivatives. To serve diverse wealth management needs, the focus shifts from a "seller's sales" model to a "buyer's advisory" model, utilizing technologies like big data and AI to optimize client profiling. The plan also emphasizes improving services for the aging population by encouraging investment in the silver economy and enriching pension-related financial products.
Promoting High-Level Opening and Global Resource Allocation
To enhance its global resource allocation capabilities, Shanghai will work to optimize mechanisms like the Shanghai-Hong Kong Stock Connect and Bond Connect, and steadily promote the inclusion of REITs in the Stock Connect program. The city will also support the issuance of Hong Kong mutual recognition funds and promote cross-border ETF connectivity with more overseas markets.
The plan includes optimizing systems for qualified investors, such as the Qualified Foreign Institutional Investor (QFII) scheme, and supporting asset managers in meeting cross-border investment demands through channels like the Qualified Domestic Institutional Investor (QDII) program. Furthermore, it explores the development of offshore and cross-border asset management businesses, including supporting institutions to launch products that facilitate global investors' access to onshore assets.
Cultivating a Supportive Business Environment
The final pillar of the strategy focuses on cultivating a sound asset management ecosystem. This involves strengthening legal safeguards, enhancing risk monitoring and early warning systems, and reinforcing consumer protection and risk resolution capabilities. The city also aims to boost the influence of asset management industry associations and attract and cultivate top-tier talent in the field by providing conveniences in areas like residency and work permits for industry professionals.
Comprehensive service support will be strengthened, including guiding asset managers on data cross-border transfer activities and reinforcing the construction of key asset management clusters across different districts of Shanghai, such as Lujiazui Financial City and the Bund area.
The opinions outlined in the document are set to take effect from June 1, 2026.