Shanghai government hands out policies and incentives to attract investments and talent in five-year fintech hub master plan

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In announcing various incentives to draw fintech companies and talents to the municipal, Shanghai has officially thrown down the gauntlet to Hangzhou, which also vies for role as global fintech centre by 2030

Shanghai grooms fintech unicorns such as Lufax, Ping An OneConnect; Hangzhou are home to tech giants Alibaba and Ant Financial

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People on a street seen against the skyline of the Lujiazui financial district in Shanghai on December 16, 2019. Photo: AFP

Georgina Lee

Published: 7:48pm, 15 Jan 2020Updated: 10:52pm, 15 Jan 2020

Shanghai’s municipal government has set a five-year goal to develop and nurture fintech research and innovation in China’s premier commercial hub, introducing a slew of incentives and policies to attract hi-tech companies and talent to turbocharge its drive.

In announcing the policies mooted since last year, the Shanghai municipal government has also formally thrown down the gauntlet to neighbouring Hangzhou city, the capital of Zhejiang province, which is home to some of China’s biggest tech companies including the cryptocurrency mining gear maker Canaan, China’s biggest e-payment company Ant Financial Services and Alibaba Group Holding, owner of South China Morning Post.

In Shanghai’s latest rules, roughly translated as “implementation plan on expediting Shanghai’s fintech centre development”, the municipal government has promised to cut the enterprise tax on hi-tech companies to 15 per cent, from the standard 25 per cent. The government is also looking to attract talent through favourable housing and medical benefits.

To support Shanghai’s push, Ant Financial announced yesterday that it would host its inaugural fintech conference from April 23-25 in the city. The first “INCLUSION” fintech conference is expecting an estimated 20,000 to 30,000 global attendees, Ant Financial said in a press release, and will cover major themes such as the global digital economy, digital finance, innovative technology, commerce and cities, and sustainability.

Hangzhou isn’t standing still. The local government formulated a plan in May 2019 to turn the city into an international fintech centre by 2030, aiming to extract more than 120 billion yuan (US$17.4 billion) in added value from the sector by 2022.