The Lujiazui Forum in Shanghai kicked off on Wednesday with China’s top financial leaders announcing big plans to shake up the financial world. One of the most exciting developments is the creation of an “international operations center” for the digital yuan, China’s own digital currency. This move, revealed by the Governor of the People’s Bank of China, Pan Gongsheng, aims to boost the global use of the renminbi.
Pan announced eight new financial policies designed to enhance Shanghai’s role in finance. These include plans to test new monetary tools in the city, which could have a big impact on how money flows in and out of China.
To support tech companies, the National Financial Regulatory Administration (NFRA) and the China Securities Regulatory Commission are rolling out new measures. Li Yunze, head of the NFRA, said they’re exploring new ways to finance science and technology development. This includes pilot programs for equity investments and loans for tech firms looking to merge or acquire other companies.
Wu Qing, chairman of the China Securities Regulatory Commission, highlighted the importance of the STAR Market—a stock market focused on innovative companies. He introduced a “1+6” policy package to reform the market, including launching a “sci-tech growth tier” to help unprofitable but promising companies get listed and grow.
Additionally, to encourage domestic investment in overseas markets, Zhu Hexin, governor of the State Administration of Foreign Exchange, announced that new quotas will be given to qualified domestic institutional investors. This means that more Chinese entities will have the opportunity to invest abroad.
These announcements signal China’s commitment to innovation and its desire to play a larger role in global finance. For young people in the Global South, these developments could open up new opportunities for collaboration and investment in the future.
