Shanghai will open an international board for global reinsurance.Build an “International Reinsurance Functional Zone” in the Lingang New Area of the Pilot Free Trade Zone.
Zhang Zhongning, deputy director of the General Office of the State Administration of Financial Supervision and Administration, said at a press conference of the Shanghai Municipal Government yesterday that he and Shanghai will jointly issue relevant implementation rules to promote the construction of Shanghai International Reinsurance Center, and officially open an international reinsurance trading market in Shanghai ( “International Reinsurance Board” for short), which solidifies and clarifies the construction path and supporting support of the reinsurance center.
In October 2021, the former China Banking and Insurance Regulatory Commission and the Shanghai Municipal Government jointly issued the “Guiding Opinions on Promoting the Construction of Shanghai International Reinsurance Center”. Zhang Zhongning said that for more than a year, the central government and the local government have actively cooperated to serve the high-level opening up and high-quality “dual circulation” of reinsurance as the goal, starting from the strategic framework, rule system, and policy support, and making every effort to promote the construction of Shanghai International Reinsurance Center .
The first is to seize the opportunity during the window period of the “re-arrangement” of global underwriting capacity, and establish a strategic framework for the construction of Shanghai International Reinsurance Center with the reinsurance international board as the core. That is to build an “International Reinsurance Functional Area” in the Lingang New Area of the Shanghai Pilot Free Trade Zone to provide services such as centralized registration, transaction, clearing and settlement, information disclosure, credit management, contract deposit and other services for international reinsurance inflow business, creating a transparent and convenient , Efficient international reinsurance into the business transaction market.
The second is to establish a reinsurance international board rule system that is in line with international standards based on a high-level institutional opening-up. Completed the design of systems and rules such as the registration management regulations for international reinsurance inflow business, transaction rules for international reinsurance business platforms, clearing and settlement methods for on-site cross-border transaction facilitation, and operational guidelines for solvency reinsurance credit risk characteristic coefficients to consolidate the foundation of the reinsurance center system.
The third is to closely combine the construction of an international reinsurance center with the financial opening of the Lingang New Area, and build a reinsurance functional area that is compatible with the business environment at home and abroad. By setting up reinsurance operation centers in functional zones or trading seats on international reinsurance business platforms, domestic and foreign insurance entities can enjoy a series of supporting policies such as exclusive fiscal and tax incentives, cross-border capital convenience, and differentiated supervision.
Ge Ping, deputy director of the Shanghai Local Financial Supervision and Administration Bureau, introduced at the press conference that Shanghai is focusing on building a financial service system that strongly supports technological innovation.
In terms of venture capital, according to statistics from the China Foundation Association, by the end of 2022, Shanghai will rank second in the country in terms of the number of entrepreneurs invested by private equity funds, the number of projects invested, and the amount involved. According to third-party statistics, in the past three years, the scale of equity investment in Shanghai has ranked first in the country; last year, the three most popular industries for equity venture capital institutions registered in Shanghai were semiconductors and electronic equipment, biotechnology and medical health , information technology, and support the city’s strategic emerging industries to strengthen and supplement the chain with practical actions.
In terms of the capital market, as of the end of April, 519 companies have been listed on the Science and Technology Innovation Board since its establishment, accumulatively raising 790.16 billion yuan in initial offerings, with a total market value of 6.7 trillion yuan. At the same time, the pilot program of transfer of private equity and venture capital shares is steadily advancing.
In terms of bank credit, in recent years, technology-specific credit products such as “Technology Performance Loan” and “Science and Technology Innovation Assistance Loan” have been continuously improved, and innovative achievements have been formed such as the patent license income pledge financing model and the exclusive rating credit model for technology innovation enterprises. As of the end of 2022, the loan balance of technology-based enterprises in Shanghai has increased by 52% compared with the beginning of the year. In 2022, the Municipal Financing Guarantee Center will undertake a total of 45% year-on-year growth in the scale of government financing guarantee loans, of which guarantee loans for technology-based enterprises account for about 57%.
In terms of technology insurance, the risk management function of technology insurance in the transformation of scientific and technological achievements shall be actively utilized. As of the end of 2022, China’s integrated circuit co-insurance body has provided a cumulative risk protection of over one trillion yuan, and the first (set) of major technical equipment insurance has accumulatively underwritten 176 key innovation projects.
