On March 31, 2020, just one day before China officially lifted the foreign ownership cap on securities and public fund management companies, the Shanghai Asset Management Association (SAMA) launched the nation's first official city guide tailored for overseas asset managers: the "Investment Guide for Overseas Asset Managers in Shanghai" (hereinafter referred to as the "Guide"). Since then, the Guide has been annually updated and unveiled at the "Shanghai Global Asset Management Forum," jointly hosted by Yicai Media and Bank of China. The Guide provides key insights on "Why Choose China?" and "Why Choose Shanghai?", covering essential topics such as legal, regulatory, and tax policies for foreign asset managers entering the Chinese market, as well as industry data. Its release has garnered widespread attention, providing crucial policy and practical guidance for overseas asset managers operating in Shanghai, playing a pivotal role in bolstering the city's aspirations as a global asset management hub.

The 2024 edition of the Guide, revised under the guidance of the Shanghai Municipal Financial Regulatory Bureau, the Shanghai Securities Regulatory Commission, and the Asset Management Association of China, introduces several core updates:

Enhanced Globalization of China's Capital Markets The 2024 Guide includes new sections on Hong Kong's two-step fund mutual recognition optimization and the expansion of the Shanghai-London Stock Connect depository receipt program. It further enriches content on cross-border capital management for Qualified Foreign Institutional Investors (QFII/RQFII), Qualified Domestic Institutional Investor (QDII) quotas, the Cross-Border Interbank Payment System (CIPS), and bond repo operations in the interbank bond market. Additionally, updated data on foreign direct investment in China, the overall asset management industry, and public and private fund management scale is included up to 2023.

Updated Regulatory Policies and Self-Regulatory Rules The Guide incorporates regulatory and self-regulatory policy updates from 2023 through mid-2024. Key additions include the State Council's new "Nine Articles" for capital markets, which aim to strengthen regulation, mitigate risks, and promote high-quality development. It also includes measures introduced by the Shanghai Municipal Government to foster the high-quality development of the city's equity investment industry and new rules from the Asset Management Association of China, such as the "Private Investment Fund Registration and Filing Measures," "Private Fund Filing Guidelines," and the "Private Securities Investment Fund Operational Guidelines," aimed at optimizing private fund registration and standardizing investment operations.

Innovation-Driven, Pioneering Growth Between 2023 and 2024, Shanghai has rolled out its 7.0 Business Environment Action Plan, launched the Shanghai Green Finance Service Platform, and inaugurated the Data Cross-Border Service Center in Lingang New Area. These initiatives reflect the city's commitment to creating a more open financial ecosystem through both policy and infrastructure improvements. In the past year alone, the number of licensed financial institutions in Shanghai rose to 1,771, with foreign firms accounting for more than 30%. Two newly licensed wholly foreign-owned public fund management companies—AllianceBernstein and Allianz—have commenced operations in the city. By the end of June 2024, 92 domestic and foreign institutions were participating in the Qualified Foreign Limited Partner (QFLP) pilot, while 63 institutions were involved in the Qualified Domestic Limited Partner (QDLP) scheme. Moreover, of the 35 foreign private securities investment fund managers registered with the Asset Management Association of China, 29 have set up operations in Shanghai.

Updated Data on Shanghai's Asset Management Industry As of June 2024, Shanghai leads the nation in terms of the number of public and private fund managers, products, and total assets under management. There are 76 public fund managers headquartered in Shanghai, with a total of 4,724 public fund products managing assets worth RMB 14.82 trillion, including RMB 11.39 trillion in public funds. The city is also home to 3,842 private fund managers overseeing 43,500 funds with a total value of RMB 4.92 trillion. Notably, 46 of China's 96 private equity firms managing over RMB 10 billion in assets are based in Shanghai, accounting for 48% of the national total, solidifying its position as the top location for large private equity firms in the country.

The 2024 Guide serves as an essential resource for overseas asset managers, offering valuable insights and detailed data to help them navigate Shanghai's evolving financial landscape and capitalize on the city's robust growth as a global asset management center.