Deputies of the National People's Congress have expressed confidence in the country's financial reform and the implementation of a comprehensive pilot zone for global wealth management in Shandong province.
Guo Shuqing, governor of Shandong province and an NPC deputy, said the province will strengthen legislation and regulation covering the financial sector and establish special courts to deal with financial disputes.
Guo welcomed international financial institutions to invest in Qingdao, a coastal city that's seeking permission to open a free trade zone.
Qingdao obtained central government approval last month for its global wealth management pilot zone.
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Models at Qingdao auto show 2013 Shandong's GDP reached 5.47 trillion yuan ($889 billion) last year, third after Guangdong and Jiangsu provinces. But its economic advantages still mostly lie in traditional industries, such as steel, oil and paper, said Yang Yixin, mayor of Dezhou city in Shandong.
The proportion of financial and investment professionals in Shandong in the total population is 2 percent, while the figures for Jiangsu and Zhejiang are at least 7 percent each, according to the Shandong Financial Affairs Office.
Guo said that laws and regulations are crucial when it comes to managing the financial sector and determining how fast and far the local financial industry can develop.
"The complexity of financial laws requires a professional court that will play a crucial role in the financial reform and innovation. Therefore, Qingdao is working on the establishment of courts for finance and intellectual property rights," Guo said.
Under targets for 2017 issued by the Shandong government in January, the province aims to have the added value of finance exceed 5.5 percent of GDP and more than 12 percent of the output value of the service industry.
"Developing the financial services industry in Shandong is considered a major strategy for shifting the economic growth model and adjusting the economic structure, and we hope more multinational financial tycoons can join us, to invest in Qingdao and other cities in province," the governor said
The balance of bank deposits in Shandong has exceeded 6 trillion yuan, which would be a huge sum in any province, and it calls for better management, said Guo.
That's one reason for the establishment of the pilot zone, Guo said. People can invest in other financial products such as insurance and securities to preserve and increase their wealth, he said.
However, Guo noted, Chinese investors aren't very familiar with globally adopted means of wealth management such as insurance and securities. To help change that situation, Shandong will recruit global financial talent, he said.
In Qingdao alone, 34 Chinese and international banks set up branches in the past two years. Zhang Xinqi, mayor of Qingdao, said the city has a geographic advantage in attracting other international banks, since it's one of the nearest areas to South Korea and Japan.
"Shandong is looking forward to seeing the establishment of branches of all asset management companies, securities firms and fund and insurance companies that comply with laws and regulations, no matter whether they're Chinese or multinational," Guo said.
