Recently, Shanghai has taken the lead in establishing a data exchange to activate data value and unleash data dividends. Since it’s believed that data capitalization and transactions have bright prospects and huge difficulties, this piece of news immediately attracted attention of all parties. Some experts even called it a milestone event in the development of global digital economy.

In fact, establishing a data exchange is an important part of Shanghai’s efforts to promote urban digital transformation across the board, and a “window of the future.” Through the “window”, we can see the city’s vision, planning and implementation of embracing the trend of the times, creating new development advantages and accelerating efforts to build an “international digital capital”.

From “eight old stocks” to “Shanghai Data Exchange”

There are eight categories of data products listed on the Shanghai Data Exchange on the first day of operation. Coincidentally, 31 years ago, there were also eight stocks listed on the Shanghai Stock Exchange on the opening day. Considering that the “eight old stocks” laid the foundation for the reform of China’s capital market, perhaps we can have similar expectations for the eight categories of data products.

It can be said that the Shanghai Data Exchange has every opportunity to write an equally exciting historical chapter. In the process of data circulation and transactions, it takes a relatively detached attitude because what it focuses on is the long-term value. For example, the Shanghai Data Exchange is positioned as a quasi-public welfare platform designed not for making profits. It’s determined not to use the data even if a large amount of data circulates through it everyday, which means it will never take this opportunity to accumulate data and compete with others for profits. All these show that what the Shanghai Data Exchange cares about is not data, but how to realize compliant, orderly and efficient allocation of data resources to create value for the whole society.

Some experts propose that in the future, drawing on Shanghai’s successful experience in futures derivatives, especially the formation of Chinese prices such as “Shanghai gold price” and “Shanghai oil price”, it’s expected that the Shanghai Data Exchange will produce the same international influence, and help increase China’s say in the formulation of important rules and resource pricing in the era of digital economy. At the same time, it will provide more trading opportunities and development opportunities for global “digital merchants” and investors.

A new model that may change the world

“Data capitalization will change the world. Whoever takes the lead in utilizing data assets can get the first-mover advantage in digital economy,” said Li Kouqing, President of the Shanghai National Accounting Institute, in a public speech on the opening day of the Shanghai Data Exchange. It’s an important mission undertaken by Shanghai to make pioneering explorations in important fields on behalf of the country and accumulate experience that can be replicated and spread.

Data elements are the key to promoting the development of digital economy. Effective application of data and unleashing of data value are inseparable from innovation and circulation centering on data. In this aspect, the Shanghai Data Exchange has carried out a series of explorations in system, technology and ecology, hoping to remove bottlenecks in data circulation and transactions before, such as difficulty in confirmation of rights, pricing and establishment of mutual trust. For example, it built China’s first data transaction supporting system, established the first fully digitized transaction system, put forward the concept of “data merchants” for the first time, and actively created a “data ecology.” In the next three to five years, the Shanghai Data Exchange will continue to make innovations, step up efforts to build the “four beams and eight columns” and integrate the exploration results. With these efforts, it’s expected to form the “Shanghai model” for circulation of data elements and facilitate the development of national digital economy and unleashing of data value.

Driving the development of the future digital city

On the opening day of the Shanghai Data Exchange, Pudong New Area announced a series of new policies to promote urban digital transformation and build a digital industry cluster. In the future, it will focus on the two areas under spotlight, namely Zhangjiang Science City and Lingang New Area, build a number of specialized parks, and actively promote “digital and intelligent” empowerment in the fields of manufacturing and finance.

As Hang Yingwei, Mayor of Pudong New Area District, said, Pudong will give full play to the driving role of the Shanghai Data Exchange in the future. In fact, the establishment of the data exchange has been clearly written by the central government in the relevant Opinions for building Pudong into a leading area. This fully shows that the significance of smooth data transactions goes beyond data itself and can affect the whole situation.

In fact, Shanghai has regarded data-driven development as the soul of the future digital city. Therefore, the Shanghai Data Exchange has been seen as an important infrastructure for promoting Shanghai’s urban digital transformation across the board and has become a concrete action to implement the central government’s strategic requirements. In the past few years, Shanghai has laid emphasis on data governance and accelerating industrial clustering. Currently, it’s home to more than 1,000 core big data enterprises. It has shared more than 5,000 pieces of public data in total. Moreover, a large number of iconic and exemplary applications have been launched and spread, which has effectively boosted high-quality economic and social development.

“Pooling, sharing and utilizing all data in the world” is not only the beautiful vision of the Shanghai Data Exchange, but also the mission of the city. Looking to the future, Shanghai, known for its openness, innovation and inclusiveness, will shoulder the responsibility of leading the whole society to embrace new values and civilization, and make continuous explorations in digital economy as a pioneer.

 

Author: Zhang Yi from Wen Wei Po