AMCHAM-2020年上海：未实现的金融愿景（英文）-2019.4-12页_1mb

Summary of "Shanghai 2020: A Financial Vision Unfulfilled"

Core Content

The document, published by the American Chamber of Commerce in Shanghai (AmCham Shanghai) in March 2019, evaluates the progress of Shanghai toward becoming a global financial center by 2020, as declared by China's State Council in 2009. It highlights the challenges and recommendations from 26 executives in the financial services sector and affiliated industries.

Main Viewpoints

1. Progress Toward the 2020 Goal

• Despite significant strides since 2009, Shanghai remains far from achieving its 2020 ambitions.
• The lack of autonomy in key financial policies and the dominance of Beijing in decision-making are major obstacles.
• The city's financial regulators can only address minor issues, while the central government holds the power to remove major structural barriers.

2. Key Issues Identified

3. Recommendations for Shanghai

To become a global financial center on par with London or New York, the following recommendations are proposed:

1. Removal of Capital Controls
2. Full Convertibility of the Renminbi (RMB)
3. End Arbitrary Government Interventions in the Stock Market
4. Lift Internet Restrictions in the Financial Zone
5. Establish a Financial Skills Training Academy
6. Institutionalize World-Class Ethics Training for Financial Institutions

4. Comparison with Other Financial Centers

• Regulation: Most respondents believe Shanghai is either overregulated or tightly regulated, which contrasts with the U.S. system where regulatory guidance is more transparent and consistent.
• License Process: The process for obtaining licenses in Shanghai is perceived as more difficult and less transparent than in other financial centers.
• Tax Regime: While there have been improvements in tax efficiency and transparency, concerns remain about the inconsistency and political influence in tax enforcement.
• Renminbi Internationalization: The lack of full convertibility and the dual RMB system (CNY and CNH) hinder Shanghai's global ambitions.

5. Barriers to Ambitions

• Capital Controls (85%) – A major obstacle to international capital flows.
• Arbitrary Government Interventions (65%) – Especially in the stock market, which undermines investor confidence.
• Insufficient Internationalization of the RMB (39%) – Limits the use of RMB in global transactions.
• Lack of Rule of Law (35%) – Affects trust in legal and regulatory frameworks.

6. Need for Global Talent and Innovation

• Shanghai must attract and retain high-quality financial professionals to foster innovation.
• Communication and cross-cultural understanding are key skills lacking in the local workforce.
• Establishing a financial skills training academy could help bridge this gap.

7. Ethics and Governance

• Ethics training in financial institutions is currently inadequate and not aligned with global standards.
• Institutionalizing these practices is essential for building trust and credibility.

8. Market Access and Trust

• The government's interventionist approach and lack of market access restrictions prevent Shanghai from becoming a truly global financial center.
• The "parcel logic" of gradual market opening is seen as a hindrance to foreign institutions adapting to the local environment.

9. Conclusion

• Shanghai's progress toward becoming a global financial center is hindered by regulatory and structural issues.
• The government needs to act decisively to remove capital controls, promote RMB convertibility, and improve transparency and legal frameworks.
• While some optimism exists, many believe the goal is still years away, and the government may not fully support Shanghai's international ambitions.

Key Information

• Survey Conducted: AmCham Shanghai surveyed 26 financial sector executives and conducted interviews to assess Shanghai's progress.
• Emulated Financial Centers: 85% of respondents recommended Shanghai emulate Hong Kong, with Singapore as the second choice.
• Dual RMB System: The onshore RMB (CNY) and offshore RMB (CNH) have different FX rates due to capital controls, creating inefficiencies.
• Legal and Regulatory Framework: The legal system in Shanghai is seen as less transparent and consistent compared to other global financial centers.
• Government Role: The central government's influence over financial policies and its tendency to intervene in markets are seen as major challenges.

Final Thoughts

The document underscores the need for China to implement sweeping reforms in its financial sector to enable Shanghai to reach its 2020 vision. Without these changes, Shanghai will continue to struggle in its quest to become a globally recognized financial center.