(Yicai Global) Nov. 4 -- Shanghai plans to develop itself as a reinsurance hub that matches the city's status as an international financial center, according to Deputy Mayor Wu Qing.

"We'll continue to build a first-class business environment and welcome everyone to invest in Shanghai," Wu said today at the first Lujiazui International Reinsurance Conference, state-backed news outlet The Paper reported.

Shanghai has unique advantages as it looks to build an international reinsurance center, Wu said. First, the insurance markets in China, Japan and South Korea have great growth potential and a high demand for reinsurance. These have laid a solid foundation and brought about market opportunities for Shanghai to create an international reinsurance center.

Second, there are a total of 115 insurance companies in Shanghai and the assets they manage account for over half of China's total. The Shanghai Insurance Exchange has set up a clearing settlement channel for cross-border funds with the Shanghai Free Trade Zone's free trade account system, Wu noted, adding that the FTZ's new area also promotes the development of a global reinsurance hub.

The insurance hub is a key part of building Shanghai into a global financial center, and reinsurance is an important part of achieving the goal of constructing an insurance center, Wu stated.

According to the local government plan, Shanghai will form a world-class financial ecosystem by building a global focal point for asset management, cross-border investment and financial services, fintech, insurance, Chinese yuan asset pricing and settlement, financial risk management and stress testing.