Shanghai's Lingang New Area of the China (Shanghai) Pilot Free Trade Zone has made significant strides in institutional innovation, particularly in financial services and offshore trade over the last six years.
Officially launched on August 20, 2019, the Lingang New Area in southeastern Shanghai aims to match the standards of the most competitive free trade zones worldwide and facilitate overseas investment and capital flows, thereby realizing the free flow of goods, according to the area's development plan.
The Area is currently developing a comprehensive ecosystem for an international reinsurance center. This includes modern office buildings, essential infrastructure, and a range of insurance institutions.
The Shanghai International Reinsurance Exchange enables domestic and foreign reinsurance entities, as well as related businesses, to manage the entire process—from transaction negotiation to policy issuance and settlement—within a single location.
"With the establishment of this reinsurance exchange, the influx of more insurance companies and the shared workspace significantly reduce communication costs," said Sun Yanli, General Manager of AXA Global Reinsurance (Shanghai) Co., Ltd, Shanghai International Reinsurance Exchange.
Additionally, the "New Area Cross-Border Pass," the country's first online digital service platform for offshore trade, has been in operation for over two years. It has facilitated more than 300 cross-border trade enterprises and 28 financial institutions, completing over 3,000 verification tasks to ensure the authenticity of offshore trades.
"We have gathered a comprehensive ecosystem for the offshore trade industry. By clustering financial institutions, we help enterprises connect more quickly and efficiently with banks and financial institutions tailored to their needs," said Dai Qimin, head of the "New Area Cross-Border Pass" Comprehensive Service Center.
In the first half of this year, offshore trade volume in the Lingang New Area exceeded 15 billion U.S. dollars, reflecting a 23.6 percent increase. From January to July, the international reinsurance business platform reported cumulative premiums surpassing 84.3 billion yuan, with transaction premiums exceeding 3.9 billion yuan.
Shanghai's Lingang New Area facilitates financial services, offshore trade with innovations
