Shanghai Financial Hub Proposal Targets China’s Global Expansion

Shanghai should strengthen its role as China's principal financial centre for companies expanding internationally, potentially increasing competition with Hong Kong, according to Shanghai Finance Institute vice-president Liu Xiaochun.

The Shanghai financial hub proposal argues that growing outbound investment requires broader financial support than a single international centre can provide.

Liu acknowledged Hong Kong's established position as a mature global financial hub but said Shanghai should complement that role by providing fundraising, syndicated loans, bond issuance, asset-backed securities, treasury management, legal services and cross-border payment capabilities for Chinese companies investing overseas.

He also proposed establishing a non-US dollar foreign-exchange trading centre and regional settlement platforms to facilitate international business.

The recommendations come as China's outbound direct investment increased 7.7% year on year to USD62bn during the first four months of 2026, underlining growing demand for sophisticated cross-border financial services.