In June 2025, the Central Financial Commission issued opinions on "Supporting the Acceleration of the Construction of Shanghai International Financial Center." At the same time, the National Financial Regulatory Administration and the Shanghai Municipal Government jointly released an "Action Plan for Supporting the Construction of Shanghai International Financial Center." These policies signify that the construction of Shanghai International Financial Center has entered a new phase of enhancing functions and global competitiveness. As a frontier of China's financial openness, Shanghai not only bears the responsibility of improving the efficiency and resilience of China's financial system but also undertakes the strategic mission of leading RMB internationalization and deepening global financial cooperation. In the future, as the construction of the international financial center continues, Shanghai will occupy a more important position in the global financial landscape and contribute more to driving high-quality economic development in China.

In the construction process of the Shanghai International Financial Center, financial institutions are no longer just simple participants but play roles as core builders and providers of momentum. Therefore, regarding business layout around the construction of the Shanghai International Financial Center, financial institutions must shift from "physical aggregation" to "functional embedding" and from "passive adaptation" to "active leadership." As a key banking institution in Shanghai, Ping An Bank Co.,Ltd. Shanghai Branch and Shanghai Free Trade Zone Branch are committed to aligning with national strategies from three dimensions: strategic awareness, business layout, and action plans, aiming to enhance their internationalization level and comprehensive financial service capabilities in depth, contributing to the further elevation of Shanghai International Financial Center.

Accurately grasping the symbiotic relationship between financial institutions and the construction of Shanghai International Financial Center, the construction of the Shanghai International Financial Center has made steady progress in recent years, achieving a series of landmark results. First, the financial element market system continues to improve. Shanghai has gathered a financial element market and infrastructure covering stocks, bonds, futures, currencies, notes, foreign exchange, gold, and insurance, with its total market capitalization of stocks and the scale of the interbank bond market ranking among the top globally. Second, the pace of financial opening to the outside world has accelerated. Shanghai has become the forefront of China's financial opening, housing international organizations such as the International Monetary Fund Shanghai Center; there are now 1,782 licensed financial institutions in Shanghai, nearly one-third of which are foreign-funded, demonstrating Shanghai's degree of internationalization in finance. At the same time, Shanghai continues to enhance its financial support capabilities for "going out" enterprises and the "Belt and Road" initiative. Third, financial infrastructure is continuously improving, with the construction of the cross-border RMB payment clearing system gaining momentum and the number of foreign capital participants growing rapidly. Moreover, Shanghai is also enhancing its trust registration and circulation system and improving the infrastructure of the gold market. Fourth, continuous financial innovation results have emerged, such as the establishment of a digital RMB international operation center; these innovations will further enhance the transparency and efficiency of Shanghai's financial market, as well as the precision and inclusiveness of financial services.

It should be recognized that the rise of the Shanghai International Financial Center is not an overnight success or the result of unilateral efforts but rather a product of joint actions of policy guidance, market evolution, and institutional dynamism. The role of financial institutions in the construction of the Shanghai International Financial Center is no longer merely as "service providers" or "participants," but their relationship resembles a symbiotic one akin to "soil" and "forest." As the core hub of the financial market, financial institutions are injecting continuous vitality into the Shanghai International Financial Center through their diversified funding and resource allocation functions.

In terms of credit issuance, by the end of 2024, the combined balance of foreign and domestic currency loans and deposits in Shanghai amounted to RMB 22 trillion and RMB 12.3 trillion, respectively, with year-on-year growth of 7.7% and 9.8%. Among these, the balance of loans to small and micro businesses reached RMB 1.16 trillion, which is 4.4 percentage points higher than the growth rate of overall loans for the same period. In RMB international settlement, the amount of cross-border RMB transactions totaled RMB 64.1 trillion in 2024, a year-on-year increase of 23%. The coverage of the Cross-border Interbank Payment System (CIPS) has significantly expanded to include 185 countries and regions. Shanghai's cross-border RMB settlement volume accounts for 47% of the national total, with a total cross-border transaction amount of RMB 29.8 trillion, up 30% year-on-year; the cumulative establishment of FT accounts in Shanghai reached 170,000, with an average yearly growth rate of over 30%, and the growth rate of cross-border transactions for non-resident enterprises via FT accounts reached 40%.

In product innovation, financial institutions are establishing innovative products such as technological innovation notes, green bonds, and REITs to accurately meet the demands of the real economy. These measures not only expand the breadth and depth of Shanghai's financial market but also help position Shanghai as a central hub for the allocation of RMB assets on a global scale, enhancing the liquidity and availability of RMB financial assets, and significantly boosting Shanghai's attractiveness and competitiveness as an international financial center.

The symbiotic relationship between financial institutions and the construction of the Shanghai International Financial Center is becoming increasingly tight, mutually promoting development akin to "soil" and "forest." However, the complexity and diversity of modern financial services mean that a single institution is often insufficient to meet all market demands. Financial institutions are building a symbiotic financial ecosystem through multi-layered, networked collaborative mechanisms. This ecological development model not only enhances the efficiency of financial resource allocation but also strengthens the overall resilience and innovative capability of the financial system, enabling various market participants to find suitable positions and value realization paths within the financial ecosystem, thus injecting stronger momentum into the construction of the Shanghai International Financial Center.

Therefore, regarding the construction of the Shanghai International Financial Center, financial institutions should also play the roles of "builders" and "connectors" within the financial ecosystem. Internally, banks, securities, insurance, and trust sectors can form complementary advantages, sharing customer resources, integrating product services, and facilitating information exchange for risk control, providing comprehensive financial solutions for customers over their entire lifecycle. Externally, financial institutions effectively link enterprises, governments, industry peers, exchanges, and various intermediary service agencies to form an open and collaborative value network. By the end of 2024, Shanghai had gathered 1,782 licensed financial institutions, including 555 foreign-funded institutions. Meanwhile, over 1,000 regional headquarters of multinational corporations have settled in Shanghai. This ecological development model directly facilitates the rapid formation of a modern financial institution system rich in business forms, complete in structure, and complementary in functions in Shanghai, enhancing the network effect and resilience of the financial center, providing solid organizational support and systemic importance for the construction of the Shanghai International Financial Center.

In recent years, another prominent achievement in the construction of the Shanghai International Financial Center is the significant pilot effect of the Shanghai Free Trade Zone and the Lingang New Area. Financial institutions within the zone have established free trade accounts, launched cross-border yuan funds, and begun high-level pilot reforms in cross-border trade and investment foreign exchange management. Initiatives such as "Shanghai-Hong Kong Stock Connect," "Bond Connect," "Shanghai-London Stock Connect," and "Swap Connect" have been successively launched, marking important progress in the interconnectedness of financial markets. The international influence of "Shanghai Gold," "Shanghai Oil," and "Shanghai Copper" prices has been steadily increasing. The payment and clearing system continues to improve, with the CIPS covering major global economies. These achievements not only represent important milestones in China's financial market openness and the RMB internationalization strategy but also serve as a crucial foundation for the construction of the Shanghai International Financial Center.

As the core driving force behind Shanghai's financial reform and innovation, financial institutions should embrace the role of "vanguard" and "pressure tester" for financial innovation in the construction of the Shanghai International Financial Center. The effectiveness and experiences of financial institutions in financial innovation trials are directly related to the progress of the national financial opening and continuously elevate the internationalization level and institutional soft power of Shanghai's financial markets. This advancement moves Shanghai from merely being an "interface" for openness towards becoming an important "participant" in the formulation of international financial rules, enhancing Shanghai's voice and influence in the international financial system.

As active participants in the construction of the Shanghai International Financial Center, Ping An Bank Co.,Ltd. Shanghai Branch and Shanghai Free Trade Zone Branch (hereinafter referred to as "the two branches") are committed to translating the strategic advantages of the Ping An Group into actionable steps supporting the construction of the Shanghai International Financial Center, under the overall framework of Ping An Group's strategy and in combination with regional characteristics and their own positioning. In recent years, the two branches have actively practiced Ping An Group's comprehensive financial model, leveraging its full-license advantages to create a financial solution that encompasses “one client, multiple accounts, various products, and one-stop service,” aimed at providing customers with a service experience that is "worry-free, time-saving, and cost-effective."

Currently, the two branches are deepening efficient collaboration between banking and internal insurance, securities, and trust sectors, actively playing the roles of "ecological builders" and "connectors." In serving the real economy, by 2024, Ping An Bank had created an inclusive financial product shelf, serving over 800,000 small and micro enterprise loan clients with loan balances exceeding RMB 500 billion; Ping An Property & Casualty Insurance provides risk coverage of over RMB 155 trillion for more than 2 million small and micro enterprises; Lufax Holding serves 6.8 million small and micro clients with loan balances exceeding RMB 213.1 billion, while Ping An Guarantee benefits more than 196,000 small and micro business owners, assisting over 16,000 technological innovation small and micro enterprises in obtaining financing.

The Shanghai Branch and Shanghai Free Trade Zone Branch also actively leverage the comprehensive advantages of the Group to provide enterprises with a full lifecycle of financial services such as loans, debt, equities, and funds. Simultaneously, they deeply integrate the Group's powerful technological capabilities, actively assuming roles as "innovation vanguards" and "capillaries," enhancing service efficiency and optimizing customer experience through advanced technological achievements of the Group, while also strengthening risk control. Furthermore, by deeply combining the Group's comprehensive financial advantages with technological innovation capabilities, they not only elevate the efficiency of financial services but also contribute to the robust operation and functional deepening of the Shanghai International Financial Center, exemplifying the symbiotic relationship between financial institutions and the construction of the financial center.

As the construction of the Shanghai International Financial Center continues, the two branches will delve deeper into five key areas: cross-border finance, technological innovation finance, wealth management and asset management, green finance, and financial technology, continuously improving financial service efficiency and risk control capabilities to make greater contributions to the construction of the Shanghai International Financial Center.

In cross-border finance, under the guidance and encouragement of the head office, the two branches leverage Shanghai's geographical advantages, policy bonuses, and the comprehensive financial strengths of the Ping An Group to offer core services using their unique offshore business licenses. Combined with branches in Hong Kong and the five major cross-border account systems of NRA and FT, their service scope covers cross-border investment and financing, payment and settlement, trade finance, and cross-border fund management, forming a crucial hub for facilitating dual circulation, firmly supporting Chinese enterprises "going global" and foreign companies "coming in," fulfilling their social responsibility to provide crucial financial services for global operations.

In technological innovation finance, Ping An Bank has tailored exclusive financial products such as "Innovation Loans" and "Innovation Bonds" to meet differentiated demands from technology companies at various stages, from startup to growth. Simultaneously, Ping An Bank Shanghai Branch continues to innovate financing support schemes. It collaborates with both internal and external venture capital, private equity funds, and brokers to introduce equity investments for high-potential technology enterprises, forming a “debt plus equity” financing support model. It also actively works with exchanges to explore bond financing support paths for technological enterprises, providing nourishing financial "vitality" to the innovation ecosystem and helping companies access direct financing channels.

In wealth and asset management, Ping An Bank has consistently played an active role in global asset allocation. As one of the first wealth management institutions in China to introduce overseas investment products, Ping An Bank has built a comprehensive overseas investment product shelf and a mature collaborative management system encompassing global equities, global bonds, mixed strategies of global stocks and bonds, and global alternative strategies. At the end of 2023, the Shanghai Branch of Ping An Bank obtained qualifications for QDLP custodial business in Shanghai and quickly established partnerships with leading global CTA strategy institutions. Through concerted efforts, the first QDLP product managed by Ping An Bank Shanghai Branch was officially established in August 2024. In the future, the Shanghai Branch of Ping An Bank will continue to enhance growth momentum in wealth management by focusing on product introduction capabilities, ensuring the continuous introduction of the best products in the market, as well as asset allocation capabilities that adjust strategies based on market changes and different customer lifecycle needs to ensure the most suitable product recommendations for clients.

In green finance, Ping An Bank Shanghai Branch actively implements ESG concepts and deeply aligns with the goals of building Shanghai into a global green finance hub, developing a diversified service system covering green credit, bonds, ABS, and ESG wealth management products. By 2024, green credit balances exceeded RMB 12 billion, with year-on-year growth exceeding 60%, and the bank underwrote green bonds worth RMB 3.5 billion. At the same time, the Shanghai Free Trade Zone Branch of Ping An Bank actively participates in international cooperation in green finance, fully utilizing financial innovation policies in the Free Trade Zone to provide financial services for cross-border green projects, while also supporting local green infrastructure development and low-carbon transition projects in Shanghai, contributing to enhancing Shanghai's influence in the global green finance sector.

In financial technology, Ping An Bank Shanghai Branch regards fintech as a core driving force for business transformation and a new engine for reshaping business models, fully promoting the deep integration and innovation of cutting-edge technologies such as artificial intelligence, blockchain, and big data in financial operations. In the field of artificial intelligence, Ping An Bank focuses on developing intelligent risk control models and intelligent investment advisory systems, achieving precise risk identification and personalized investment advice through machine learning algorithms. In blockchain technology, it strives to build supply chain finance and cross-border payment platforms, using distributed ledger technology to enhance transactional transparency and processing efficiency. In big data analytics, it establishes comprehensive customer profiling systems and precise marketing models to deeply explore customer needs and optimize service experiences. Through the profound application of these cutting-edge technologies, Ping An Bank Shanghai Branch aims to achieve comprehensive digital upgrades in risk management, operational management, customer service, and business experience, thereby reinforcing the technological foundation for the construction of the Shanghai International Financial Center.

As the Shanghai International Financial Center construction process faces various challenges influenced by new changes in the international situation and the transformation and development of the Chinese macroeconomy, it is essential to tackle how to effectively manage risks while deepening financial openness. When compared to top international financial institutions, Chinese financial institutions still have areas where they lag behind in product innovation capabilities, talent reserves, and global brand influence. Additionally, systemic barriers, such as the cross-border flow of data, somewhat constrain the depth and breadth of financial openness. Facing these challenges, we must promote the construction of the Shanghai International Financial Center with a more prudent and innovative approach. In particular, while financial institutions work to enhance their internationalization levels, we must actively "bring in" and "go out," while also aligning with regulations and building talent, continuously improving risk management levels.

In terms of "bringing in," Ping An Bank fully utilizes its international perspective and trading capabilities to promote the comprehensive and healthy development of the panda bond market. In 2024, with the support of Ping An Bank's head office, the Shanghai Branch hosted the "Panda Bond Investment and Trading International Forum" in Shanghai, which invited nearly 100 high-quality corporate bond issuers, international multilateral development institutions, financial bond issuers, and quality investors from both domestic and overseas. Ping An Bank's vision is to connect more domestic and foreign investor communities, provide liquidity and capital market services, form good support for the development of the Chinese panda bond market, and accelerate the RMB internationalization process. Therefore, Ping An Bank plays three key roles in the panda bond market: it is the first to initiate a market-making service for panda bonds, serving as a "market maker" providing liquidity, it was the first to issue panda bond liquidity indicators to the entire market, enhancing pricing efficiency and liquidity in the secondary market as an "innovator," and it serves as a "connector," linking issuers and investors both domestically and internationally.

We firmly believe that successfully implementing panda bond business is a vital strategy for attracting more supranational institutions, governments, enterprises, and financial institutions to enter and participate in the Chinese market, which is significant for accelerating the construction of the Shanghai International Financial Center and contributing Ping An's strength for "bringing in."

Regarding "going out," given the accelerated pace of Chinese enterprises moving overseas in recent years, an increasing number of Chinese firms are opting to expand abroad, organizing production, sales, investments, and financing on a global scale, which also presents common challenges. For a long time, Ping An Bank has resolutely fulfilled its responsibility to serve Chinese enterprises operating abroad. Currently, the Shanghai Branch of Ping An Bank and the Free Trade Zone Branch provide cross-border syndicate financing services for Chinese enterprises' overseas project construction and operations, meeting long-term and large financing needs and supporting Chinese enterprises in project construction abroad, covering multiple countries and regions. By establishing FT accounts, these branches offer a comprehensive range of services including deposits, loans, and settlements, directly conforming to overseas markets, allowing onshore and offshore enterprises to fully participate in the CNH foreign exchange market, utilizing the exchange rates and interest rates of both onshore and offshore markets to provide better support for Chinese enterprises' "going out."

As one of the domestic commercial banks that highly values "internationalization," Ping An Bank boasts a market-leading international perspective. It not only proactively "goes out" to learn from the advanced experiences of overseas developed markets, catering to the demands of customers in overseas markets, but also actively "brings in" by attracting foreign experts and senior trading specialists from Wall Street to participate in the development of Ping An Bank. The Shanghai Branch and Shanghai Free Trade Zone Branch are actively leveraging their geographical advantages to attract a group of talents with overseas experience, striving to combine overseas experiences with local practices to build a locally-rooted team with an international perspective. This enables them to better understand international customer needs and domestic market rules and regulations, thus supporting clients in handling cross-border business.

Meanwhile, enhancing internationalization levels is not without challenges and must always prioritize risk management as the foundation of global operations. In response to a complex and ever-changing international environment, Ping An Bank constructs a comprehensive cross-border risk management framework covering dimensions such as country risks, exchange rate and interest rate risks, and geopolitical risks. By establishing a risk rating model covering over 60 countries and regions and implementing strategies to neutralize exchange rate risks, Ping An Bank effectively helps enterprises avoid foreign exchange losses. Simultaneously, the two branches improve their anti-money laundering compliance management, achieving a 95% accuracy rate in identifying suspicious transactions, and develop comprehensive contingency and business continuity plans to ensure stable business operations during unexpected events. These initiatives provide a solid guarantee for the sustainable international business of the two branches and offer vital support for the Shanghai International Financial Center in addressing global risk challenges.

Ping An Bank Shanghai Branch and Shanghai Free Trade Zone Branch firmly believe that financial institutions and the construction of the Shanghai International Financial Center form a shared destiny community. Currently, we are in a critical period of financial opening and innovation. Only through strategically elevated perspectives and embracing global competition with a collaborative spirit can we seize historical opportunities and meet the challenges of the times. Ping An Bank Shanghai Branch and Shanghai Free Trade Zone Branch will continue to leverage their comprehensive financial and technological empowerment advantages, deeply participate in the construction of the Shanghai International Financial Center, and collaborate with all parties to jointly create a new pattern for China's financial industry that is more open, innovative, and sound, living up to our historical mission and creating a better future together.