In the Global Power City Index, released this month by the Institute for Urban Strategies, Shanghai ranked 11th of 48 cities. The survey evaluates major cities of the world on their "magnetism" in attracting people, capital and companies from around the world.

The rankings don't surprise Patrick Liu, Asia Pacific president of Neuberger Berman, a New York-based investment management firm that entered the Chinese market in 2008 and had assets under management of more than US$500 billion at the end of September.

When foreign financial institutions come to China or East Asia to expand their businesses, their first stop is Shanghai, he said.

"Without financial liberalization measures, none of us would have been able to come, much less the expansion of our business in China," Liu said.

Neuberger Berman has been licensed in China as a wholly foreign-owned public equity fund.

"China is the most important strategic market for Neuberger Berman," Liu said. "We have increased registered capital for four consecutive times since its establishment here."

He added, "I think there are two main characteristics of an international financial center: It has to be a first choice for international financial institutions to expand their business; secondly, it has to cultivate competitive financial institutions that can go overseas. At present, Shanghai has already achieved the first point, which is by no means an easy job."

In the September 2024 Global Financial Centers Index, Shanghai's financial sector development ranked third among the top 10 global cities and fifth in business environment. The rankings are compiled from over 29,000 assessments from an online questionnaire and over 100 indices from organizations such as the World Bank, the Organization for Economic Co-operation and Development and the Economist Intelligence Unit.

Wesley Yang, deputy CEO & head of Markets of Standard Chartered China, said in an exclusive interview that his bank has benefited from the development of Shanghai in terms of financial liberalization.

"In the past 20 years, Shanghai has achieved encouraging results toward the international financial center, as it has built a complete, efficient financial trading, custody and clearing platform that covers the entire product chain," Yang said.

He added, "Shanghai has the most complete financial infrastructure in China, such as the China Foreign Exchange Trading Center, Shanghai Futures Exchange, China Financial Futures Exchange, Shanghai Gold Exchange, Shanghai Stock Exchange and Shanghai Clearing House."

Yang said Shanghai has become an important "bridge" for the opening up of China's financial markets, connecting domestic market and global markets.

"For example, in the past decade, China's bond market has been steadily opened," he said, citing as examples the "connect" between Chinese mainland and Hong Kong interest rate swap markets, and Panda bonds, the yuan-denominated bonds issued by a non-Chinese entity but sold domestically.

"Shanghai's government departments and financial regulatory agencies have been actively cooperating with counterparts in Hong Kong to promote interconnectivity of financial market infrastructure, trading and clearing functions," he said.

Yang said he hopes this process broadens with the introductions of new models, markets and products, as well as enhanced ties with overseas markets and investors.

Last February, the Shanghai government released its implementation plan to promote a higher level of opening up in the China (Shanghai) Pilot Free Trade Zone.

The plan calls for more cross-border transmission of financial data, an upgrading of trading in goods and the three-year construction of regulatory model in line international economic and trade rules.

"The opening of financial markets is a constant work in process, and I think Shanghai has been doing great," said Yang.