Shanghai reveals its fintech action plan

Shanghai has announced an action plan to expedite construction of a financial technology center and it is to launch an annual financial technology forum sponsored by Alibaba Group and its financial affiliate Ant Financial. 

Shanghai would foster 20 top financial technology companies with international recognition and influence in the next five years and attract around 20 financial institutions with cutting-edge fintech capabilities. 

The city also plans to strengthen technology research in artificial intelligence, blockchain, cloud computing, big data and 5G. 

A total of 25 major tasks has been laid out, covering five areas, to step up research on fintech, to enhance the application of fintech in consumer payment and other financial services, to launch a new regulatory scheme for fintech businesses on a trial basis, and to ensure a favorable business environment for fintech development. 

It will also foster 50 innovative and demonstrative financial technology startup projects. 

Zhao Wanbing, vice director of Shanghai Financial Bureau, said the city will establish a mechanism for integrated financial technology supervision in the Yangtze River Delta region and launch pilot regulatory measures in the Lingang Special Area of the China (Shanghai) Pilot Free Trade Zone. 

In the first three quarters in 2019, the value added by the financial industry in Shanghai grew 13.6 percent and stood at 467 billion yuan (US$66.7 billion), the highest among other domestic cities. 

Tax preferential policies would also be unveiled and fintech companies would enjoy a 15 percent favorable enterprise income tax rate. 

The first INCLUSION Fintech Conference will be held from April 23 to 25 in Huangpu District as part of the city's efforts to bring stakeholders together and encourage dialogue. 

Keynotes and panels will cover themes such as the global digital economy, digital finance, innovative technology, commerce and cities, and sustainability.

It would also push forward for the listing of financial technology firms on Shanghai's main board or the STAR board. 

Lujiazui Financial City has also unveiled a fintech demonstration center to showcase latest technology and pilot programs in the fintech sector.  

The Shanghai head office of the People’s Bank of China said it will also push forward supply side reform in the financial industry and has been promoting the interconnectivity of financial services and public service systems as well as the integration of data resources across different industry sectors.