Chinese vice-premier: China to step up support for Shanghai RMB hub

China pledged stronger support for Shanghai to develop into a global hub for RMB asset allocation, as senior officials set out a series of measures to deepen financial reform and opening up at the 2026 Lujiazui Forum that opened in Shanghai on June 17.

Speaking at the opening ceremony of the two-day forum, Chinese Vice-Premier He Lifeng said China will continue to follow the development path of finance with Chinese characteristics, implement the 15th Five Year Plan (2026-2030), and work to stabilize the global economy. He said China will further open its financial sector to international institutions, safeguard financial security, and promote global financial governance cooperation through multilateralism and win-win outcomes.

He added that China will support Shanghai in piloting offshore financial business, accelerating its role as a global hub for RMB asset allocation and risk management, streamlining cross border investment, and expanding financial services such as shipping insurance to strengthen international competitiveness.

Pan Gongsheng, governor of the People's Bank of China, announced six measures at the Lujiazui Forum to advance financial reform, opening up, and RMB internationalization. 

These include refining the short-term interest rate mechanism by narrowing the floating range from 70 basis points to 50 basis points, launching the Foreign and International Monetary Authorities RMB Repo Facility to provide liquidity to overseas official institutions, and introducing a pilot program for offshore RMB forex trading in the Shanghai Free Trade Zone.

Additional measures include targeted liquidity support tools for non-bank financial institutions, an action plan for Shanghai's offshore finance development, and the establishment of an interbank market data repository.

China Securities Regulatory Commission Chairman Wu Qing also addressed the forum, saying regulators will strengthen the global influence of "Shanghai prices", develop Shanghai into a financial innovation pilot zone, and promote technology driven financial models to enhance financial soft power.

Highlighting China's broader roadmap for financial opening up, the forum aims to reinforce Shanghai's role in global financial markets, advance RMB internationalization, and expand cooperation opportunities for international investors.

(Cover via VCG)