China’s first insurance exchange to launch in Shanghai as early as June 12

China will officially launch the nation’s first insurance exchange in Shanghai as early as this weekend as the city takes another step towards its goal of becoming a leading insurance centre by 2020, with the new bourse adding to the list of exchanges that already trade currencies, precious metals, shares and commodities.

Pei Guang, head of the Shanghai branch of the China Insurance Regulatory Commission, said the exchange, which will provide trading facilities and services for reinsurance, shipping insurance, insurance assets and special risk insurance, will be launched during the two-day Lujiazui Forum that opens June 12 in the mainland’s major financial hub.

Xiang Junbo, chairman of the nation’s top insurance regulator, is widely expected to join the launching ceremony when he is in Shanghai to co-chair the city’s flagship financial forum.

“Shanghai is poised to emerge as a major global insurance centre by 2020 with rising pricing power and a voice in reinsurance, shipping insurance and insurance capital operations,” said Pei during the 2016 Shanghai International Insurance Forum on Monday.

Pei said the bourse and the nation’s insurance investment fund, which are both based in Shanghai, were indicators of the city’s strength as it pursues the goal of becoming an insurance powerhouse on the global stage.

Shanghai is also well positioned to achieve the same ambition, being one of the core cities in China’s One Belt and One Road initiative and a major player in the Yangtze River Delta economic belt, Pei said.

Industry insiders said the symbolic launch of the exchange is a further step for Shanghai in flexing its muscles in the industry, with trading of products likely to come later this year.