The People's Bank of China recently officially released the "Guiding Opinions on Financial Support for the Construction of the Greater Bay Area" (hereinafter referred to as the "Opinions"). This represents a critical strategic decision by the CPC Central Committee and the State Council, aimed at promoting high-quality development in the Greater Bay Area, deepening financial cooperation between mainland China and the Hong Kong and Macao Special Administrative Regions, and enhancing the capacity of financial services to support the real economy in the region.
The "Opinions" propose 26 specific measures covering areas such as facilitating cross-border trade and investment, expanding the opening-up of the financial sector, supporting technological innovation, and strengthening financial regulatory cooperation. These measures provide robust financial support for the construction of the Greater Bay Area.
Cross-border Financial Innovation
The "Opinions" clearly state the need to promote cross-border financial innovation, explore the establishment of a Cross-Border Wealth Management Connect mechanism, support cross-border financing for businesses in the Greater Bay Area (GBA), advance fintech cooperation, and elevate GBA financial services. Specific measures include:
First, optimize cross-border RMB business.Supports Bay Area enterprises in using RMB for cross-border settlements, streamlines the processing of cross-border RMB business procedures, and expands the use of RMB in cross-border trade and investment within the Bay Area.
Second, promote the facilitation of cross-border investment and financing.Support Bay Area enterprises in conducting cross-border financing, relax cross-border financing restrictions, and enable eligible enterprises to issue bonds in domestic and overseas markets to broaden their financing channels.
Third, deepen cross-border financial cooperation.Strengthen cooperation between mainland and Hong Kong/Macau financial regulatory authorities, establish a cross-border financial regulatory coordination mechanism, and jointly prevent cross-border financial risks.
Support technological innovation
The "Opinion" emphasizes supporting technological innovation and providing financial backing for the construction of an international science and technology innovation center in the Greater Bay Area. Specific measures include:
First, improve the technology finance service system.Support banks in establishing technology branches and developing services such as tech insurance and tech guarantees to provide full-lifecycle financial services for technology enterprises.
Second, support financing for science and technology innovation enterprises.Encourage venture capital and private equity firms to invest in technology innovation enterprises in the Greater Bay Area, and support qualified tech companies in listing and raising funds on the STAR Market.
Third, promote the commercialization of scientific and technological achievements.Support the establishment of technology transfer funds to connect scientific achievements with capital and accelerate their industrialization.
Expand opening up of the financial sector
The "Opinion" proposes expanding the opening-up of the financial sector, supporting financial institutions from Hong Kong and Macao in establishing branches in the Greater Bay Area (GBA), and promoting interconnectivity among GBA financial markets. Specific measures include:
First, support the development of financial institutions from Hong Kong and Macao.Supports qualified Hong Kong and Macau financial institutions from establishing branches such as banks, securities firms, and insurance companies in the Greater Bay Area with national treatment.
Second, promote the interconnection of financial markets.Deepen mechanisms such as Stock Connect and Bond Connect to support financial market connectivity between the Greater Bay Area and Hong Kong and Macao, promoting two-way capital flows.
Third, optimize cross-border financial services.Support Bay Area financial institutions in providing convenient financial services to Hong Kong and Macao residents, including account opening, wealth management, and loans.
Strengthen financial regulatory cooperation
The "Opinion" calls for strengthening financial regulatory cooperation, establishing and improving cross-border financial risk prevention and control mechanisms, and maintaining financial stability in the Greater Bay Area. Specific measures include:
First, establish a regulatory coordination mechanism.Strengthen communication and coordination between mainland and Hong Kong/Macao financial regulators, and establish a regularized regulatory cooperation mechanism.
Second, strengthen the risk prevention and control system.Establish and improve mechanisms for monitoring, warning, and resolving cross-border financial risks to jointly prevent such risks.
Third, enhance information sharing.Promote regulatory information sharing to improve efficiency and reduce costs.
A spokesperson for the People's Bank of China stated that the issuance of the "Opinions" will provide robust financial support for the construction of the Greater Bay Area and promote high-quality economic development in the region. Moving forward, the PBOC will collaborate with relevant departments to ensure effective implementation of the "Opinions," guaranteeing that all policy measures are落地 and deliver tangible results.
The Industry Finance Division of the Guangdong Enterprise Finance Association stated that it will actively organize member units to study the spirit of the "Opinion," seize policy opportunities, leverage policy benefits, and contribute financial strength to the construction of the Greater Bay Area.