Shanghai's Pudong cements position as financial services hub

Lujiazui Financial District in Pudong, with the Shanghai Tower, Shanghai World Financial Center, Jinmao Tower, and Oriental Pearl TV Tower on display, July 18, 2018 [Photo/IC]

Pudong New Area in Shanghai has emerged as the top choice for foreign financial institutions looking to conduct business in China, local media reported on April 16.

The special district is now home to 300 licensed foreign-funded financial institutions, accounting for 30 percent of the total number in Pudong. Forty-three of the global top 100 capital management institutions have bases in the area.

Neuberger Berman, a private, independent, employee-owned investment management firm from New York, announced the opening of a new investment management outlet via wholly foreign-owned enterprise in Shanghai two weeks ago.

Once the registration is complete, Neuberger Berman will be able to manage and distribute private funds to a broader client base including private banks, independent wealth management platforms and local institutions.

"The company has been licensed to a number of businesses since it came to Pudong," said Liu Song, head of China and general manager of Neuberger Berman Investment Management (Shanghai) Limited, adding that the opening up of the Chinese financial sector has propelled Neuberger Berman to shift its asset management business towards Shanghai.

He also noted that China has strong potential in asset management and will be capable of competing with the United States in the future.

In March, JPMorgan Chase & Co, a leading global financial services firm and one of the largest banking institutions in the United States, announced that it has received approval from the China Securities Regulatory Commission to establish a new majority owned and controlled securities company in Pudong.

The large number of financial factor markets coupled with open and transparent government services make Pudong an ideal place for foreign financial institutions, said Kong Wei, a senior partner of Zhong Lun Law Firm, one of China's leading full-service business law firms whose many clients are foreign-funded enterprises.

Pudong has introduced 10 foreign projects since China launched its new wave of opening-up measures in the financial service sector last year.

In the future, Pudong will strive to improve the quantity and quality of financial institutions and strive to increase its global influence.