SHANGHAI - Shanghai is striving to become a global financial center by establishing its leading position in the trading of yuan-denominated financial products, according to a state plan, said authorities of Shanghai financial services on Tuesday.

"The rising of Shanghai as an international financial hub must go simultaneously with the internationalization of renminbi, and the city must also turn itself into a global yuan product trading center to match the rising impacts of the currency," said Fang Xinghai, Director of the Shanghai Financial Services Office.

A state plan released by the National Reform and Development Commission on Monday says Shanghai will become the global center of yuan trading, clearing and pricing by 2015 as an important element in its bid to become an international financial hub by 2020.

However, the state plan of making Shanghai a global onshore yuan center will not put the city in direct competition with Hong Kong, which is already an offshore yuan center, because the two cities have their respective advantages, which may enable mutual learning and cooperation, said Fang.

"There is large room for development of financial services in both Shanghai and Hong Kong, and cooperation, rather than competition is to be considered at the current stage," said Fang.

There are opportunities for Shanghai and Hong Kong to cooperate and achieve a win-win situation, said Yu Wenjian, deputy head of Shanghai Securities Regulatory Bureau.

Shanghai has been playing an important role since the launching of the RQFII program last year, and Shanghai and Hong Kong can mutually benefit in yuan trading in the long run, said Yu.

Yu said authorities are developing measures to optimize process of flowing of renminbi.

Fang said whether the proposed International Board of the Shanghai Stock Exchange will be launched by 2015 depends on whether conditions are mature.

The Board will certainly start trading when conditions are right, said Fang.

Innovation of financial services will be encouraged, and banks may apply for permits of trial operation for new financial products which can run for tests before official approval of the products, said Fang.

New financial market tools and products will add to variety in the financial markets of Shanghai, and new financial derivative products will be gradually developed, said Fang.

Shanghai will strive to attract more international companies and global banking service providers to set their headquarters in Shanghai, according to the plan.

An increasing number of companies and banking service providers are shifting their focus from European countries and the US to East Asia, especially China, so it is logical and reasonable to consider Shanghai as a base for their headquarters, said Fang.

Shanghai is studying and researching to establish an insurance exchange, according to Li Feng, deputy head of Shanghai Insurance Regulatory Bureau.

The complicated current international situation may set risks to many businesses, but it will benefit, rather than hinder China's efforts to establish an international financial hub, said Fang.