Lujiazui, the financial center of Shanghai. [Photo/IC]
China’s two leading financial institutions, the Bank of China and the People’s Insurance Company Group of China (PICC), have developed a plan to strengthen Shanghai’s position as an international shipping center.
The initiative, centered on financial services, is the first of its kind proposed by two institutions specializing in banking and insurance.
The plan outlines 29 measures to enhance shipping safety, streamline trade, and promote green transformation.
The aim is to promote the whole-process integration of bank and insurance products and services centered on renminbi settlement.
The plan will also facilitate the implementation of rules to protect against risks, such as establishing English-language terms for China’s cargo insurance and associated financing products. Premiums and claims will be settled in renminbi with arbitration primarily conducted in Shanghai.
For clients using these new insurance and financing terms, Bank of China and PICC will offer credit support, preferential rates, and other financial services.
The plan also aims to advance the digital transformation of shipping finance to streamline trade with convenience services.
The two institutions are working to integrate the processing of electronic documents in finance and insurance, exploring feasible solutions for the online circulation of letters of credit, and jointly developing digital solutions for shipping insurance and financing services.
They are also collaborating to provide export enterprises a comprehensive service bundle that includes cargo insurance, export credit insurance, export product liability insurance, and bank loans.
Moreover, the plan will support the construction of cruise ships, the cruise economy, and the green transformation of the shipping industry.
Experts believe that the plan has set a precedent that will encourage more central financial institutes to explore similar initiatives in Shanghai.
Source: Jiefang Daily
,https://english.shanghai.gov.cn/en-Latest-WhatsNew/20250225/753090cf0d60462da32192dc7a0889fc.html