Five Chinese authorities announce measures to boost finance for GBA opening-up

Five Chinese departments, including the central bank, on Monday announced measures to bolster the opening-up of the financial sector of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) through stepped-up support for the Nansha district in South China's Guangdong Province, according to a 30-point guideline posted on the People's Bank of China's website.

The guideline vows to further expand the opening-up of the financial sector by measures such as actively attracting diversified investment institutions, while supporting eligible investors from China's Hong Kong and Macao Special Administrative Regions in legally establishing securities and fund companies, as well as acquiring stakes in futures companies of the Chinese mainland. It also highlights the importance of constructing corresponding platforms, including the ones in Nansha.

When it comes to boosting cross-border yuan innovation and enhancing trade and investment settlement facilitation, banks can directly settle yuan capital for qualified foreign firms without special accounts if the funds comply with rules and transactions and are traceable. Funds in yuan accounts opened by overseas institutions in banks operating in the district may be deposited as fixed-term or large-denomination certificates of deposit under agreed interest rate terms.

In terms of exploring institutional openness in finance, the guideline vows to support Nansha in aligning with international high-standard frameworks like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement to pilot financial reforms. It will also support fully implementing pre-establishment national treatment with a negative list model, streamlining restrictive measures, and enabling qualified foreign institutions to join financial pilot programs.

When it comes to advancing financial market interconnectivity in the GBA, the supportive measures include encouraging financial institutions to leverage free trade accounts and domestic accounts for overseas institutions to provide integrated financial services, as well as supporting Nansha in conducting pilot programs for streamlined cross-border equity investment facilitation.

As for supporting key industries, the guideline proposes specific measures dedicated to the development of advanced sectors including high-end manufacturing, digital industries, the marine industry and industries of the future.

The 30 key measures cover areas including improving financial services for innovation and entrepreneurship, strengthening financial support in social and livelihood sectors, developing specialized financial services, advancing interconnectivity in the GBA financial markets, conducting cross-border financial innovation and exchanges, and enhancing financial regulatory mechanisms.

The measures supporting the financial opening-up of the GBA are just one of the latest examples showcasing the country's continuous efforts.

The State Council recently approved a plan that aims to expand comprehensive pilot programs to accelerate the services industry's opening-up, which includes 155 pilot tasks across key areas such as the opening of key services sectors and the promotion of industrial innovation and development, Ling Ji, vice minister of commerce and deputy China international trade representative, said at a press conference in April, the Xinhua News Agency reported.

In the financial sector, pilot tasks include supporting the development of international factoring services and attracting overseas insurance companies, sovereign funds, pension funds, certification and verification agencies, and environmental, social and governance funds to provide financing, investment and technical services for green projects, according to Xinhua.