Foreign institutions expressed confidence in Shanghai's financial evolution while offering policy recommendations during the 2025 Lujiazui Forum.
by YANG Zhijin, HE Liuying
At the two-day Lujiazui Forum held on June 18–19, China's Central Financial Commission released a new directive outlining a five- to ten-year roadmap for developing Shanghai into a financial center that matches the country's comprehensive national power. The plan includes building a more competitive, inclusive, and open financial system, while strengthening the city's role in global RMB asset allocation and risk management.
Executives from global banks, regulators, and think tanks said Shanghai has made tangible progress and laid out key suggestions to accelerate the city's global financial integration.
The UK Financial Conduct Authority highlighted Shanghai's expanding product offerings and deeper international connectivity since the 2019 launch of the Shanghai-London Stock Connect.
Z/Yen Group, the London-based think tank behind the Global Financial Centres Index (GFCI), ranked Shanghai eighth overall and fourth globally in financial industry development. It also placed Shanghai 16th in fintech capabilities. Z/Yen credited strong infrastructure and financial services maturity, while emphasizing the need for continued investment in digital skills.
Crédit Agricole Corporate and Investment Bank reaffirmed its long-term commitment to Shanghai, citing the city's momentum and role as a key financial center.
Oaktree Capital highlighted Shanghai's global market standing—third in stock exchange capitalization, first in bond custody, and top-ranked in gold and commodity futures trading. The firm estimated annual financial market turnover in the city exceeding 2,800 trillion yuan.
Citigroup's Head of Japan, Asia North & Australia and Banking, Marc Luet, pointed to Citi's 123-year history in Shanghai and its support for the global expansion of leading Chinese firms. He recognized regulatory reforms in derivatives markets as milestones for China's integration into global finance.
Standard Chartered described Shanghai and Hong Kong as dual engines of China's financial architecture, with growing roles in fintech innovation and capital market maturity.
Z/Yen urged Shanghai to continue strengthening its business environment and infrastructure, while attracting international talent by improving mobility access and lifestyle support for foreign professionals.
Crédit Agricole CIB called for enhanced alignment between Chinese and international green finance standards, particularly on disclosures and product innovation such as green bonds. It emphasized the value of EU-China cooperation in achieving net-zero targets.
Frankfurt Main Finance underscored the role of financial services in driving broader economic growth, suggesting that Shanghai further enhance its financial service ecosystem.
Oaktree Capital recommended simplifying approval processes and improving regulatory consistency to attract foreign capital and deepen engagement with global markets.
Standard Chartered proposed closer coordination between Shanghai and Hong Kong to support the financing needs of emerging tech enterprises and advance high-quality economic development.
Citi offered three recommendations: boost policy predictability and regulatory communication; align domestic standards with global norms such as credit ratings; and streamline profit repatriation for foreign firms. It also supported deeper secondary market liquidity to meet long-term investor needs, and promoted renminbi internationalization through cooperation in global financial infrastructure and expanded use of Chinese government bonds as collateral assets.
