The Financial History of Shenzhen: A Spectacular Miracle of China's Financial Reform
If one has to choose a city to represent China's financial reform breakthroughs in the recent decades, Shenzhen is an inevitable choice.
In 1978, Shenzhen was still called Bao'an County, with extremely weak financial foundations.
By 1979, the total deposit balance of the entire Bao'an County was only 101 million yuan, and the loan balance was only 75 million yuan. There were very few financial institutions, making it a veritable "financial desert".
In 1980, Deng Xiaoping, the chief architect of reform and opening - up, drew a circle in the south and selected Shenzhen as the "experimental field", kicking off China's economic reform and opening - up to the outside world. Since then, Shenzhen has soared like a roc with wings.
It has risen from a border agricultural county with a GDP of only 196 million yuan in 1979 to one of the top three financial centers in China with a GDP exceeding 3.68 trillion yuan and a financial industry added - value exceeding 470 billion yuan in 2024.
This is an epic that starts from scratch and resonates with China's reform and opening - up. It is the most magnificent financial reform history in China's history, and it can definitely be called a miracle even in the world's financial history.
Initial Establishment and Exploration: The "Experimental Field" of Reform and Opening - up (1979 - 1990)
During this period, with the courage to "blaze a trail through thorns", Shenzhen created multiple "firsts" in China's financial history.
For example, introducing institutions to break the monopoly.
In 1982, the Shenzhen Branch of the Nanyang Commercial Bank opened, becoming the first foreign - funded bank branch in New China.
Another example is the birth of a national - level bank.
In 1987, China Merchants Bank was established in Shenzhen. In the same year, Shenzhen Development Bank (Shenzhen Development) was listed on the Shenzhen Stock Exchange. By the end of 1990, its stock price soared from 1 yuan per share to a maximum of 180 yuan per share (after adjustment), creating a myth in the early capital market.
There is also the rise of non - bank financial institutions.
In 1988, Ping An Insurance Company of Shenzhen was established, initially with only 13 employees, laying the foundation for it to become a comprehensive financial giant in the future.
What attracted the most attention was the gestation and birth of the capital market.
In 1983, Bao'an County United Investment Company (Shenzhen Bao'an) issued the first stock in New China, raising 13 million yuan. Subsequently, Shenzhen Development, Vanke, Jintian, and Yuanye (the "old five stocks") successively issued stocks, initiating the exploration of the shareholding system reform.
In 1987, Shenzhen Development publicly issued common stocks to the public, raising 7.93 million yuan, triggering a rare rush to buy.
However, after the issuance of stocks, there was a natural demand for transfer. Without an exchange, transactions were carried out at the counters of securities companies, and even a booming over - the - counter "black market" was formed. But this laid the market and public opinion foundation for greater exploration and reform and the establishment of an official exchange.
Leap and Growth: The Capital Market Takes the Lead, and the Financial Center Begins to Emerge (1990 - 2004)
On December 1, 1990, the Shenzhen Stock Exchange was established and started centralized trading ahead of the Shanghai Stock Exchange.
Marked by this, Shenzhen's finance achieved a quantitative leap, and Shenzhen's financial industry entered the golden age with a historical leap.
The establishment of the Shenzhen Stock Exchange provided a direct financing channel for Chinese enterprises and greatly promoted the shareholding system reform and the establishment of the modern enterprise system.
The "Shenzhen speed" was also continuously demonstrated in the capital market.
By the end of 2004, there were 536 listed companies on the Shenzhen Stock Exchange, with a total market value of 1.1 trillion yuan and an annual trading volume of 1.6 trillion yuan. The scale had grown exponentially in 14 years.
The Shenzhen Component Index and the Shenzhen Composite Index have become one of the most important "barometers" of the Chinese economy. A large number of well - known enterprises such as Vanke, China Merchants Bank, Ping An, and ZTE have raised funds through listing on the Shenzhen Stock Exchange and grown into industry giants.
Relying on the high - tech industry and the capital market, Shenzhen has become the most active region for venture capital in China.
In 1999, Shenzhen Capital Group (SCGC) was established. By 2004, it had invested in more than 100 projects with a total investment of over 2 billion yuan.
Local venture capital institutions such as SCGC have developed rapidly, providing the "first pot of gold" for countless technology start - up enterprises and laying the financial foundation for the "Silicon Valley of China".
Adjustment and Transformation: The Small and Medium - sized Enterprise Board, the Growth Enterprise Market, and Financial Innovation (2004 - 2019)
Entering the new century, facing the competition from the Shanghai Financial Center and its own development bottlenecks, Shenzhen's financial industry entered a transformation period characterized by differentiation, specialization, and innovation.
The Shenzhen Stock Exchange adjusted its own positioning.
In 2004, the Small and Medium - sized Enterprise Board was launched on the Shenzhen Stock Exchange, providing an exclusive financing platform for growing small and medium - sized enterprises. This was the first step in the re - positioning of the Shenzhen Stock Exchange after suspending the issuance of new stocks.
By the time the Growth Enterprise Market was launched in 2009, there were already 327 listed companies on the Small and Medium - sized Enterprise Board, with a cumulative financing of over 300 billion yuan.
In 2009, the Growth Enterprise Market was officially launched.
This was a milestone event. It focused on "independent innovation enterprises and other growth - oriented start - up enterprises", truly connecting the closed - loop of "technological innovation + venture capital + capital market", triggering a national entrepreneurship boom. The Growth Enterprise Market has become the most distinctive label of Shenzhen's finance.
By 2019, the number of companies on the Growth Enterprise Market had increased from the initial 28 to nearly 800, with a total market value of over 6 trillion yuan. (By 2024, this data had become 1,365 companies and 12.45 trillion yuan.)
In 2010, the Qianhai Shenzhen - Hong Kong Modern Service Industry Cooperation Zone was established.
The state has given Qianhai the strategic positioning of a "demonstration window for the opening - up of the financial industry" and a "pilot zone for cross - border RMB business innovation". Qianhai has become a "policy special zone" for financial innovation and has carried out a large number of pilot projects in areas such as cross - border RMB loans, QFLP (Qualified Foreign Limited Partner), and QDLP (Qualified Domestic Limited Partner).
By the end of 2019, a total of 52,000 financial enterprises had been registered in the Qianhai Shekou Free Trade Zone, and the cumulative withdrawal amount of cross - border RMB loans in Qianhai had exceeded 40 billion yuan.
There is also the rise of FinTech.
In 2014, Webank, the first Internet bank in China, was approved to open. By the end of 2019, its number of effective customers had exceeded 100 million, and the balance of managed loans had exceeded 440 billion yuan.
Sublimation and Leadership: The Pilot Demonstration Area of Socialism with Chinese Characteristics (Since 2019)
Under the new national strategy, Shenzhen's finance is moving towards a higher level, and the function of the capital market reform "experimental field" is also being continuously deepened.
For example, the registration system for the Growth Enterprise Market. From the reform in 2020 to the first quarter of 2025, more than 400 new listed companies on the Growth Enterprise Market were issued and listed through the registration system, with a total IPO financing of over 500 billion yuan. More than 90% of these companies are high - tech enterprises.
Another example is the revitalization of the main board of the Shenzhen Stock Exchange. From the merger of the two boards in 2021 to July 2025, more than 160 new listed companies were added to the main board of the Shenzhen Stock Exchange, with an IPO financing of over 300 billion yuan.
As of the end of July 2025, the total number of companies on the main board of the Shenzhen Stock Exchange was close to 1,600, with a total market value of nearly 40 trillion yuan.
There is also the forefront position of "cross - border finance" and "RMB internationalization".
On February 26, 2024, the "Detailed Rules for the Pilot Implementation of the Cross - Border Wealth Management Connect in the Guangdong - Hong Kong - Macao Greater Bay Area" (the "2.0 version") was officially implemented, greatly lowering the investor access threshold and increasing the investment quota.
By the end of April 2024, 67 banks in Shenzhen had participated in the pilot. The number of accounts opened exceeded 45,000, and the cross - border remittance amount had exceeded 3.5 billion yuan, maintaining a leading position in the proportion of the total amount in the Greater Bay Area.
The pilot of digital RMB in Shenzhen has continued to deepen.
At the beginning of 2024, there were more than 3 million merchants accepting digital RMB in the city. The cumulative number of digital RMB wallets opened exceeded 60 million, and the transaction amount exceeded 600 billion yuan. All indicators ranked among the top in the national pilot cities.
In 2025, Shenzhen continued to deepen the implementation of multiple innovative application scenarios of digital RMB in areas such as prepaid business, housing provident funds, taxation, and supply - chain finance.
Achievements and Strength: One of the Top Three Financial Centers in China
After more than 40 years of rapid development, Shenzhen's financial industry has achieved a series of remarkable achievements, demonstrating extraordinary strength.
According to the data in the "Statistical Bulletin of Shenzhen's National Economic and Social Development in 2024" released by the Shenzhen Statistics Bureau:
In the banking sector, at the end of 2024, the balance of various local and foreign currency deposits of financial institutions (including foreign - funded ones) in the city was 13.577802 trillion yuan; the balance of various local and foreign currency loans of financial institutions (including foreign - funded ones) was 9.483033 trillion yuan; and the total assets of the banking industry were 13.57 trillion yuan.
In the securities sector, at the end of 2024, there were 2,852 listed companies on the Shenzhen Stock Exchange, with a total market value of 33.04 trillion yuan. The Shenzhen Stock Exchange occupies an important position in the global capital market, with its trading volume ranking third globally and its market value ranking sixth globally for a long time. The number of IPOs has ranked first globally for many years.
There are a total of 422 A - share listed companies in Shenzhen, with a total market value of 8.79 trillion yuan, second only to Beijing. The total number of companies listed on major overseas exchanges in Shenzhen exceeds 160, with a total market value of over HK$1 trillion.
In the insurance sector, the annual premium income reached 195.821 billion yuan, and the total assets of insurance legal persons in Shenzhen were 7.3 trillion yuan.
In 2024, the added - value of Shenzhen's financial industry reached 471.05 billion yuan, a year - on - year increase of 4.2%. The added - value of the financial industry accounted for about 12.8% of the GDP.
Shenzhen's financial strength ranks among the top three in Chinese cities, forming the "first echelon" of China's financial centers together with Beijing and Shanghai. In the Global Financial Centres Index released by the British think - tank Z/YEN Group in 2025, Shenzhen ranked 9th, maintaining a leading position and a strong upward momentum.
The number, scale, and density of Shenzhen's financial institutions rank among the top in large and medium - sized cities. Industry giants such as Ping An of China and China Merchants Bank have successfully made it onto the Fortune Global 500 list.
In addition to the "banking, securities, and insurance" sectors, Shenzhen is also very strong in areas such as venture capital, wealth management, and financial technology.
Among the top 20 in the national venture capital ranking, local Shenzhen institutions such as SCGC, Fortune Capital, Co - Stone Capital, and Orient Fortune Capital have all made the list.
In the wealth management field, as of the end of 2022, the asset management scale of various wealth management institutions in Shenzhen had exceeded 26.6 trillion yuan, accounting for about 1/5 of the national total. In 2024, the total wealth management scale in the city further increased to 29 trillion yuan.
In the financial technology field, among the top 5 global institutions in terms of patent applications, 2 are from Shenzhen. Among them, Ping An has ranked first globally for two consecutive years, and Tencent ranks among the top five globally.
In the latest 37th Global Financial Centres Index report (GFCI 37), Shenzhen ranked first in China and third globally in the financial technology sub - index, second only to New York and London, and the score gap with the top - ranked city has further narrowed.