Unlocking Shanghai's next wave: Capital, data and talent in flow

Oliver Baete, CEO of Allianz SE, looks forward to more accessibility provided to foreign financial service providers in the Chinese market so that they can provide integrated solutions. Shanghai should also strengthen its ties with Hong Kong to form a smoother two-way capital flow for the Chinese market, he said.

Foreign financial service providers can assist in transforming the massive short-term savings in China into long-term investment, using them more efficiently by developing asset management products, pension funds, and insurance, said Jean Lemierre, chairman of the board of directors of French banking giant BNP Paribas.

Echoing him is Prudential's Vadera, chairwoman of Prudential, saying that over 60 percent of China's household financial assets are short-term deposits with lower yields. Evidence from the Bank for International Settlements shows that opening up and financial integration, based on long-term investment, tends to make domestic markets more stable and resilient to crisis.

A domestic market opened to international investors is usually more stable and liquid, she said.