(Yicai) March 7 -- Shanghai should now focus on becoming a global hub for Chinese yuan-based financial asset allocation and a center for risk management, according to the deputy director of the central bank’s head office in the city and president of its local branch office.

Jin Penghui urged this next step for the megacity after telling the National People's Congress yesterday that "Shanghai is moving towards becoming a powerful international financial center.

“When global investors consider allocating yuan assets, the first thing they think of is Shanghai,” Jin noted, adding that offshore investors still account for a low share of the total holdings of such assets, so there is much room for growth.

Jin suggested opening up access to Shanghai’s financial market further, increasing the liquidity of yuan financial assets, the launch of more international financial products including futures and options, and creating yuan-based financial products, including bonds, stocks, gold, and crude oil.

These steps would help to encourage offshore investors to hold yuan assets, attract global investors to invest and start businesses in Shanghai, and promote Shanghai as a center for innovation, trading, pricing, settlement, and risk management of global yuan products, he said.

Based on a vision for Shanghai as a global hub for yuan asset allocation and risk management, the city should help domestic financial institutions put down roots in Shanghai, serve global markets, and help companies in develop in overseas markets, Jin pointed out.

Jin also said the monitoring of cross-border fund risks should be beefed up, a transaction reporting database covering global financial markets should be set up, and emergency prevention measures should be implemented.

In addition, as an international financial center, Shanghai should not only have premium financial products, but also basic financial services benefiting all residents, he said.

Editors: Xu Wei, Futura Costaglione