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Shanghai makes steady progress in building global financial center

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By Xie Weiqun, People’s Daily

Shanghai has made new breakthroughs in building itself into a global financial center over the recent decade, with surging financial transaction volumes, an improved market structure and constantly strengthened core financial functions. The city is playing a more important role as a hub of the opening-up of China’s financial sector.
The added value of Shanghai’s financial industry hit 862.7 billion yuan ($120.44 billion) last year, accounting for 19.3 percent of the city’s GDP in the same period.
The growth of the industry came from its strengthened core functions.
Financial factor markets play a core role in building an international financial center. Shanghai is one of the cities in the world that boast the most complete financial factor markets, where currency, stocks, bonds, future goods, foreign exchange, gold, insurance, trust and other financial sectors can all be traded.
The total volume of transactions in Shanghai’s financial markets reached 2932.98 trillion yuan, up 16.8 percent year on year, growth rate increased by 6.4 percent.
Last year, the Shanghai Stock Exchange ranked first in the world in terms of the total amount of initial public offerings. Besides, Shanghai was also the third largest trading hub in the world for spot gold and crude oil futures.
To get listed is a key step for sci-tech and innovation firms to grow bigger. The Shanghai Stock Exchange’s sci-tech innovation board, also known as the STAR market, is working to straighten the “last mile” for sci-tech and innovation companies planning to go public.
As of the end of May this year, 528 companies were listed on the STAR market, which had so far raised 822.36 billion yuan ($114.73 billion) in total through initial public offerings. Their market value added up to 6.7 trillion yuan. The capital market’s efficiency in serving the real economy has been constantly improved.
The capacity and volume of capital management is another important factor in evaluating the construction of an international financial center. Shanghai has made important progress in strengthening international capital management.
Capital management is considered a bridge between the real economy and financial capital. Shanghai, placing high importance on the development of the capital management industry, vowed two years ago that it would build itself into an important hub of capital management in Asia and one of the leading centers of capital management globally by 2025.
So far, the city has made a progress in the development of capital management. The asset under management in Shanghai accounts for around a quarter of the national total. In particular, publicly offered funds and insurance assets make up 1/3 of the total in China, and equity funds 1/2. Besides, Shanghai also leads in the volume of privately offered fund management.
Shanghai is home to a batch of top-tier asset management institutions. It sees an increasingly enriched system of asset management products, and rich human resources in the financial sector.
Thirty-two of the 38 foreign-owned private equity fund management firms registered at the Asset Management Association of China are in Shanghai, and 17 of the top 20 asset management companies in the world have set up entities in Shanghai.
Besides, BlackRock, the first global asset manager licensed to start a wholly owned onshore mutual fund business in China, as well as J.P. Morgan Securities (China) Company Limited, the first foreign public fund manager to gain full ownership over its Chinese joint venture, are also headquartered in Shanghai.
Shanghai is enhancing its efforts to build an international center of green finance, so as to contribute to China’s goal of peaking carbon dioxide emissions before 2030 and achieving carbon neutrality before 2060.
“Over the recent years, Shanghai has been a forerunner in the country in terms of innovation in green financial products, introduction of key organizations and platforms, and relevant international cooperation and exchanges,” said Liu Liya, Assistant to President at the Shanghai University of Finance and Economics.
As a city that gathers financial markets, Shanghai has always been making innovation in green financial products and services. For instance, China’s first low carbon transition bonds were issued on the Shanghai Stock Exchange. In addition, a series of carbon efficient indexes were launched in the city, including the Shanghai Stock Exchange 180 Carbon Efficient Index and the Shanghai Stock Exchange Shanghai Environment and Energy Exchange Carbon Neutrality Index. Last year, Shanghai’s Pudong New Area became the first pilot zone in China for climate investment and financing.
Building a multi-level system of green financial organizations and institutions, Shanghai is working to improve its green financial services. In 2020, the National Green Development Fund was inaugurated in Shanghai, which focuses on green and low-carbon development in key areas. Besides, financial institutions in Shanghai have successively established specialized departments or teams for green finance. As of the end of 2022, the balance of green loans of Shanghai’s financial institutions totaled 842.39 billion yuan, up 39.4 percent year on year, 32 percentage points higher than the growth of other types of loans in the same period.
Strengthening capabilities in serving real entities, building an important hub of asset management and reforming and innovating green finance, Shanghai is making steady progress in building an international financial center.
Shanghai will further enhance global resource allocation, make its financial market, institution and infrastructure systems more competitive in the world, and improve the financial sector’s capability and efficiency in serving the real economy, said an official with the Shanghai municipal government.
The city will also build a virtuous cycle among technology, industry and finance, prudently and actively deepen reform and expand opening up in the financial sector, and build a competitive and attractive financial ecology, the official added.

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China’s new chapter in global innovation

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By Gu Yekai, Liu Yiqing, People’s Daily

At a smart construction project site managed by China State Construction Engineering Corporation, a quiet technological revolution is underway. Amid cranes and concrete, engineers are deploying advanced artificial intelligence (AI) systems that could fundamentally reshape the construction industry.

Li Fengjian, an AI specialistwith Xianyuan Technology, detailed how the company’s latest intelligent system – built on a large model – adapts to complex construction environments.”Engineering machinery equipped with intelligent agents can adjust its operations automatically in response to weather conditions,” Li explained, adding that a spatiotemporal sensing network further enhances the system, providing real-time tracking of both personnel and materials throughout the construction site.

In February this year, Xianyuan Technology rapidly integrated its self-developed model with DeepSeek-R1, effectively blending a general-purpose framework with industry-specific models. This integration, Li noted, has produced a solution capable of delivering expert-level performance in challenging, dynamic environments. The firm is based in the Shanghai Foundation Model Innovation Center, aburgeoning AI incubator that now hosts over 200 innovative enterprises.

China’s technological transformation extends well beyond the construction sector. Overthe past three decades, the country has evolved from its initial forays into internet connectivity to becoming a key player in global digital innovation.

Here, a steady stream of technological innovations are emerging, from the early days of emails and web browsing to the cutting-edge technologies represented by DeepSeek and the dynamic evolution of social media.

Wu Jianping, an academician at the Chinese Academy of Engineering and headof the Zhongguancun Laboratory, pointed out that while China had introduced only one internet standard before 2005, it now contributes to over 200 worldwide. Such strides illustrate the country’s concerted push toward high-level technological self-reliance – a journey marked by both persistence and determination.

Beyond the digital realm, China is makingsignificant inroads in aerospace, new energy, and other high-tech sectors. It has transitioned from being a follower to standing shoulder-to-shoulder with global leaders, and in some areas, even taking the lead. Wu attributed these achievements to a dynamic ecosystem of policy reforms and talent cultivation that encourages creativity and technical expertise at every level.

Amid intensifying international competition, collaborative research and the integration of new technologies with traditional industries are central to China’s high-quality economic development.

Mei Linhai, a researcher at China’s State Key Laboratory of Cognitive Intelligence, remarked that the age of AI calls for continuous exploration. “In this era, everyone is an innovator. Only by persistently pushing the boundaries can we remain at the forefront of both technological and industrial development,” Mei observed.

In the field of general-purpose AI, Mei emphasized that independent innovation is paramount. He advocates for a self-driven industrial ecosystem that leveragesbreakthrough technologies to boost productivity and unlock new possibilities, Mei said.

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Chinese democracy in action:a village bench meeting shapes national law

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By Wei Zhezhe, Liu Botong, People’s Daily

In a modest corner of Jiangmen, south China’s Guangdong province, residents of Weidong village are experiencing firsthand a form of democracy that starts at the grassroots level and reverberates all the way to Beijing.

Wu Tengxin, a local villager who relies on a scooter for daily mobility after contracting polio, recalls a time when the village’s public spaces were ill-equipped for people with disabilities. Now, thanks to a simple suggestion made during a meeting, his everyday life has changed.

In November 2022, a team from a local legislative outreach office – a branch of China’sNational People’s Congress (NPC) – visited Weidong village and set up a “bench-style meeting.” Residents, including the elderly and those with disabilities, gathered to voice their concerns about inadequate accessibility.

Amid the conversation, Wu offered a straightforward proposal: “I hope rural accessible facilities can be improved to make mobility easier for people with disabilities and the elderly.” His words were relayed verbatim to lawmakers.

The response was swift. On June 28, 2023, at the third session of the 14th NPC Standing Committee, legislators passed a law on building a barrier-free living environment. The law stipulates that improvements”shall align with social and economic development levels, coordinate urban and rural progress, and gradually narrow the gap in infrastructure between urban and rural areas.”

Today, Wu observes that the village’s main roads and public squares have been upgraded with accessibility features that make getting around considerably easier.

This episode illustrates what Chinese officials call “whole-process people’s democracy” – a system where citizen input is woven into every stage of policy development.

Jilie Ziri, head of Abuluoha village in Butuo county, southwest China’s Sichuan province, remarked that for young generations in China, democracy has become a lived experience. “Villagers are the masters of village affairs,” he said, emphasizing how active villager participation has injected new vitality into local governance.

Experts point to consultative democracy as a cornerstone of this process. Tao Kaiyuan, vice chairman of the Central Committee of the China Association for Promoting Democracy and vice president of the Supreme People’s Court, underscores the important role of the Chinese People’s Political Consultative Conference, whose members hail from every stratum of society and bring a wealth of expertise and connections.

Their regular forums, field research, and public consultations have created robust channels for citizens to contribute ideas and forge consensus.”This approach gathers collective wisdom and transforms public voices into policy,” Tao said.

Another crucial manifestation is the effectiveness of China’s political party system. Under the leadership of the Communist Party of China, Chinese democratic parties actively fulfill their duties, offering recommendations that often translate into concrete policy decisions. This integrated approach demonstrates the unique strengths of China’s political system and the advantages of whole-process people’s democracy.

Tao emphasized that whole-process people’s democracyhas evolved into an efficient and dynamic democratic practice – one that not only reflects the essence of socialist democracy but also presents a pioneering model of political civilization, contributing Chinese wisdom and solutions to global governance and democratic development.

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Chinese modernization: blueprint for global progress

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By He Yin, People’s Daily

At China’s recent annual “two sessions,” Chinese modernization once again captured global attention. International observers are closely following a range of new measures designed not only to accelerate Chinese domestic transformation but also to unlock fresh opportunities for global development.

They believe that Chinese modernization, built on a foundation of openness and cooperation, will continue to yield global benefits with each new milestone.

Today, China stands as a formidable force in the global economy – accounting for around 18 percent of the global economy and nearly 30 percent of world manufacturing output. Year after year, the nation has contributed about 30 percent to global economic growth. With import and export records with almost all countries and regions designated in the United Nations Statistics Division, the country is a major trading partner for more than 150 countries and regions. In 2024, its exports to over 160 countries and regions saw growth.

Often hailed as the “world’s largest developing country,”the “second-largest economy,””world’s factory,””global market,” and “innovation powerhouse,” China is increasingly viewed as a beacon of stability and progress.

In recent years, high-profile events such as the seventh China International Import Expo – where intended deals exceeded $80 billion – and the establishment of over 1.239 million foreign-invested enterprises have reinforced the nation’s reputation as a vast, dynamic market.

Meanwhile, policies encouraging Chinese companies to “go global” have seen a steady stream of new technologies, goods, and services permeate international markets, knitting the country ever tighter into global value chains and bolstering its commitment to win-win cooperation.

The influence of Chinese modernization is evident far beyond its borders. In the Central African Republic, President Faustin-Archange Touadera has repeatedly screened China’s political documentary Carry the Reform Through to the End for cabinet discussions, while officialsin Uzbekistan are adapting China’s poverty-reduction experience to suit their national context. These moves challenge the assumption that modernization must follow Western models, suggesting that China’s alternative pathway offers a viable route to development.

Beyond economic growth, Chinese modernization is increasingly celebrated for its potential to foster win-win cooperation and shared prosperity.

Under the Belt and Road Initiative (BRI), for example, Kazakhstan secured its first maritime access and Laos launched its first modern railway. Support from the Global Development and South-South Cooperation Fund has propelled over 160 projects, benefiting more than 30 million people. Moreover, China has given all the least developed countries with which it has diplomatic relations zero-tariff treatment for 100 percent tariff lines, signaling its commitment to an open and inclusive global economy.

China’s modernization agenda also tackles global challenges head on. In response to global environmental risks, China advocates for building a community of all life on the Earth. To bridge the digital and AI divide, it has launched the AI Capacity-Building Action Plan for Good and for All to ensure that technological advancements benefit every corner of the globe.

On the security front, China continues to promote dialogue and reconciliation in conflict zones while engaging in multilateral security collaborations, reinforcing its reputation as a nation committed to peace and stability.

By proposing initiatives such as the Global Development Initiative, the Global Security Initiative, and the Global Civilizations Initiative, China is not just charting its own course toward modernization but championing an equal and orderly multipolar world and a universally beneficial and inclusive economic globalization – one that seeks to ensure that no nation is left behind on the path to prosperity.

The global appeal of Chinese modernization is far from accidental. Decades of reform and opening up have accelerated its development while enabling the country to contribute to global governance. On the international stage, it has taken on a leadership role – actively shaping global norms, building a community with a shared future for mankind, and advancing world peace and development. By sharing its successful experiences and technological advancements, the country seeks to help other developing countries chart their own courses toward progress.

With over 1.4 billion people engaged in this modernization journey – a number that surpasses the total population of all developed countries combined – China’s approach is redefining the global modernization landscape. For China, modernization is not solely a national endeavor but a blueprint for global progress – a vision that promises a more inclusive future for all.

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