In the Global Power City Index, released this month by the Institute for Urban Strategies, Shanghai ranks 11th out of 48 cities. The survey rates the world’s major cities on their “magnetism” to attract people, capital and businesses from around the world.

This ranking comes as no surprise to Patrick Liu, president of the Asia-Pacific region of Neuberger Berman, a New York-based investment management firm that entered the Chinese market in 2008 and managed assets of more than $500 billion. dollars at the end of September.

When foreign financial institutions come to China or East Asia to expand their businesses, their first stop is Shanghai, he said.

“Without the financial liberalization measures, none of us would have been able to come, let alone expand our business in China,” Liu said.

Neuberger Berman has obtained a license in China as a wholly foreign state investment fund.

“China is the most important strategic market for Neuberger Berman,” Liu said. “We have increased our share capital four times in a row since its inception here.”

He added: “I believe that an international financial center has two main characteristics: it must be the first choice of international financial institutions to develop their activities; second, it must form competitive financial institutions that can establish themselves abroad. Shanghai has already scored the first point, which is by no means an easy task. »

In the September 2024 Global Financial Center Index, Shanghai’s financial sector development ranks third among the world’s top 10 cities and fifth in terms of business environment. The rankings are compiled from more than 29,000 assessments from an online questionnaire and more than 100 indices from organizations including the World Bank, the Organization for Economic Co-operation and Development and the Economist Intelligence Unit .

Wesley Yang, deputy CEO and head of markets at Standard Chartered China, said in an exclusive interview that his bank has benefited from Shanghai’s development in terms of financial liberalization.

“Over the past 20 years, Shanghai has achieved encouraging results as an international financial center, as it has built a comprehensive and efficient financial trading, custody and clearing platform that covers the entire product chain” , Yang said.

He added: “Shanghai has the most comprehensive financial infrastructure in China, such as the China Foreign Exchange Trading Center, Shanghai Futures Exchange, China Financial Futures Exchange, Shanghai Gold Exchange, Shanghai Stock Exchange and Shanghai Clearing House “.

Yang said Shanghai has become an important “bridge” for the opening of China’s financial markets, connecting the domestic market and global markets.

“For example, over the past decade, China’s bond market has gradually opened up,” he said, citing as examples the “nexus” between mainland China’s interest rate swap markets. and Hong Kong, and Panda bonds, yuan-denominated bonds issued by China. a non-Chinese entity but sold domestically.

“Shanghai government departments and financial regulatory agencies have actively cooperated with their Hong Kong counterparts to promote the interconnectivity of financial market infrastructure, trading and clearing functions,” he said.

Yang said he hoped this process would expand with the introduction of new models, markets and products, as well as strengthening ties with foreign markets and investors.

Last February, the Shanghai government released its implementation plan to promote a higher level of opening-up in the China (Shanghai) Pilot Free Trade Zone.

The plan calls for more cross-border transmission of financial data, improved trade in goods and the construction over three years of a regulatory model consistent with international economic and trade rules.

“Opening up financial markets is constant work and I think Shanghai is doing very well,” Yang said.