China's national flag flutters at a business district in Beijing.
During the 2026 Lujiazui Forum, six Chinese government agencies, including the People's Bank of China (PBOC), jointly released the "Action Plan for Developing Offshore Finance in Shanghai International Financial Center," setting out plans to make Shanghai the first city in China to establish an offshore financial system commensurate with its role as an international financial centre.
The plan is the first comprehensive policy document outlining how Shanghai will build its offshore financial system, marking the transition from institutional design to deeper implementation of offshore financial reform.
Foreign financial institutions have long been essential participants in China's offshore financial development. Over the years, they have played an active role in building the Shanghai International Financial Center, expanding their presence in cross-border investment and financing, global treasury operations, and cross-border risk hedging, while building strong capabilities and an impressive track record.
The new policy has been met with a positive response from foreign financial institutions. At a recent seminar on Shanghai's new offshore finance initiative and the business environment for foreign financial institutions, hosted by International Financial News and organized by the Offshore Finance Research Institute of the China Chief Economist Forum, representatives from Standard Chartered, BNP Paribas, Mizuho Bank, Fubon Bank, J.P. Morgan Asset Management, Allianz, AIA Life, Tokio Marine & Nichido Fire Insurance, and Nomura Orient International Securities shared views on practical actions to optimize the business environment and explored new approaches to advancing the development of the Shanghai International Financial Center.
