Lujiazui sets course to become world-class financial hub within 5 years

Ti Gong

Lujiazui aims to become a world-class financial hub in the following five years, officials said.

The Lujiazui Administration Bureau on Thursday released the 14th Five-Year Plan (2021-25) for the Lujiazui Financial and Trade Zone of the China (Shanghai) Pilot Free Trade Zone.

Lujiazui will become China's top financial zone with the highest level of openness and internationalization, and rival the world's leading financial hubs like London and New York, said Liang Qing, deputy director of the administration.

The area will take part in global economic governance to enhance cooperation and global competitiveness, he added.

It will form international and professional cooperation platforms based on high-standard rules, such as the Regional Comprehensive Economic Partnership Agreement (RCEP) and the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).

Also, it will deepen cooperation with London and other global financial centers, and work with them to establish forums, secretariats and other platforms in Lujiazui to promote the area to the world.

According to Liang, Lujiazui will also provide a complete industry chain and unrivalled business environment, hoping to become a magnet for financial talent and institutions, especially global operators.

Under the plan, the number of regional headquarters of multinational companies in Lujiazui is expected to reach 200 by 2025, almost double those at the end of 2020, and account for one-fifth of the city's total.

So far, the area has already had the most regional headquarters of multinational companies in Shanghai. It hopes to help Chinese headquarters grow to become Asian-Pacific or even global operators, said Wu Jianfeng from the administration.

"We are now working on the Global Operation Program (GOP) to attract industry leaders to land management, trading and other core business in Lujiazui, as well as to set up R&D, investment and other major platforms," she said, giving some examples.

"Decathlon is encouraged to embrace the new retailing trend and establish its largest R&D innovation center in the world here. Gilead Sciences Shanghai Pharmaceutical Technology Co is considering landing part of local clinical R&D for specific drugs in Lujiazui."

Also under the plan, Lujiazui will gather at least 10,000 financial institutions, including more than 1,000 licensed financial institutions, to become the global RMB financial asset allocation center by 2025.

Over the same period, it will also have 1,550 shipping service agencies. Its shipping insurance business will account for more than 80 percent of the country's total and rank top three in the world, according to the plan.

Aiming to become the city's No. 1 commercial area by 2025, its total retail sales of consumer goods will exceed 100 billion yuan (US$15.43 billion), the plan said.