(Fixes to clarify the Big Bay area includes Guangdong province and not just Shenzhen)
SHANGHAI (Reuters) -Shanghai is exploring cross-border wealth management program and will strengthen links with other financial centers such as London and New York as it aims to become a global asset management center here 2025.
The plans, announced by the financial city of Lujiazui in Shanghai at a conference on Wednesday, come as China tightens scrutiny of overseas listings in a move, some say, designed to benefit the country’s own capital markets. country.
It also shows that China continues to open up its financial markets, despite rising Sino-U.S. Tensions and recent market volatility triggered by Beijing’s regulatory crackdowns on tech companies and private tutoring companies.
During the meeting, which was attended by asset managers such as BlackRock, Fidelity International and Franklin Templeton, Shanghai encouraged international players to participate in the city’s planned global financial asset trading platform. .
Several foreign financial institutions, including Charles Schwab and T Rowe Price Group, signed agreements on Wednesday to locate in Lujiazui, Shanghai’s response to Wall Street. More than 100 foreign managers have already opened offices or businesses in the district.
Shanghai did not give a timeline for its cross-border wealth management program or details of how it would work.
China is set to launch a Wealth Connect program in the Great Bay region that links its southern province of Guangdong to neighboring Hong Kong and Macao.
Other steps to strengthen Shanghai’s status as an asset management hub include the launch of a Global Asset Management Partnership (GAMP) program to facilitate industrial cooperation.
Shanghai will also explore the possibility of enabling local institutions to offer cross-border asset management or advisory services to investment funds launched abroad.
Reporting by Samuel Shen and Andrew Galbraith; Editing by Kim Coghill