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Hengqin Qianhai both ushered in the "Financial 30" spree

2023-04-10 16:44120

On February 23, the People's Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and the Guangdong Provincial Government jointly issued the "Opinions on Financial Support for the Construction of the Hengqin Guangdong-Macao Deep Cooperation Zone" (hereinafter referred to as "Hengqin Finance 30") and " Opinions on Financial Support for Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone to Comprehensively Deepen Reform and Opening Up (hereinafter referred to as "Qianhai Financial 30 Measures").


  The two documents each proposed 30 financial reform and innovation measures, covering people's livelihood finance, financial market interconnection, modern financial industry development, promotion of cross-border trade and investment and financing facilitation, and strengthening of financial regulatory cooperation, including a number of national firsts. The innovative system will effectively promote Hengqin Cooperation Zone and Qianhai Cooperation Zone to become new experimental fields for national financial reform and innovation. The People's Bank of China stated that actively doing a good job in the development and opening up of the Guangdong-Macao Deep Cooperation Zone in Hengqin, and promoting the comprehensive deepening of reform and opening up in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone will help further promote my country's financial opening and innovation, and deepen financial cooperation between the mainland and Hong Kong and Macau. Qin and Qianhai will provide solid financial support for the construction of a major cooperation platform in the Guangdong-Hong Kong-Macao Greater Bay Area.


  Highly open to the financial industry in Hong Kong and Macau


  From the perspective of the document, the "Hengqin Financial 30 Measures" designed a more open financial system arrangement, through the construction of an electronic fence system, innovative cross-border financial management, and explored the free flow of cross-border funds. At the same time, it will focus on strengthening the connectivity with Macau's financial market, promote the integration of the cooperation zone and Macau's financial services, create a financial environment that facilitates the life and employment of Macau residents, and develop a modern financial industry that helps Macau's moderately diversified economic development. The document clarifies that by 2035, the Hengqin Cooperation Zone will be built into a new highland for my country's financial industry to expand its opening up to the outside world, a financial service platform for China-Portuguese-speaking countries, and a demonstration zone for the interconnection of financial markets in the Guangdong-Hong Kong-Macao Greater Bay Area.


  The "30 Measures for Qianhai Finance" emphasizes comprehensively strengthening the functions of the pilot demonstration window for the opening of the national financial industry in the Qianhai Cooperation Zone and the cross-border RMB business innovation pilot zone, supporting Hong Kong's integration into the new pattern of national financial reform and opening up, and enhancing Hong Kong's status as an international financial center. The document proposes that by 2035, a higher level of financial opening based on the negative list will be realized, cross-border funds will flow efficiently and conveniently, a financial rule system in line with international standards will be basically established, and the financial environment will reach a world-class level, which will serve as a catalyst for the expansion of the national financial industry. Openness plays a stronger role in demonstration and leadership.


  Judging from the two documents, a high degree of opening up to the financial industry in Hong Kong and Macau is an important content. For example, the "Hengqin Financial 30 Measures" proposes to lower the entry threshold for Macao banking financial institutions and insurance financial institutions to enter the cooperation zone, and to build a China-Portuguese-speaking countries financial service platform and other measures. The "30 Articles of Qianhai Finance" proposed to allow overseas financial institutions, especially Hong Kong, to set up commercial banks, wealth management subsidiaries, consumer finance companies, and pension management companies in the Qianhai Cooperation Zone; to support qualified Hong Kong banks in the Qianhai Cooperation Zone Set up branches in accordance with the law to expand business in the Mainland; support qualified domestic and foreign financial institutions and international financial organizations to establish functional headquarters such as R&D centers, science and technology innovation centers, and data service centers in the Qianhai Cooperation Zone.


  Deepening financial cooperation between Guangdong, Hong Kong and Macao


  "Hengqin Financial 30 Measures" and "Qianhai Financial 30 Measures" focus on cross-border financial cooperation between Guangdong, Hong Kong and Macao, and have made a series of institutional arrangements in terms of financial institution cooperation and financial market cooperation. For example, in terms of financial market interconnection, the "Hengqin Financial 30 Measures" proposed to strengthen the linkage between the financial market in the cooperation zone and the offshore financial markets in Macau and Hong Kong, steadily expand the scope of cross-border asset transfers, and steadily develop the "Cross-Border Wealth Management Connect" business At the same time, it also innovatively proposes to optimize and transform the free trade account (FT account) system, and establish an electronic capital fence in the cooperation zone through the isolation of financial accounts. The "30 Financial Measures in Qianhai" proposed to expand the business scope of Hong Kong-funded financial institutions, allow financial institutions in the securities industry to carry out direct financing in Hong Kong, support the Shenzhen Stock Exchange to establish a Guangdong-Hong Kong-Macao Greater Bay Area bond platform, and support the Hong Kong Stock Exchange to jointly trade in Qianhai The center conducts RMB pricing and settlement services for cross-border spot transactions of bulk commodities.


  In terms of strengthening financial regulatory cooperation, the "Hengqin Finance 30 Measures" proposed to establish a Guangdong-Macao financial risk prevention and control mechanism; strengthen the monitoring of capital transactions in the cooperation zone, and strengthen anti-money laundering, anti-terrorist financing, anti-tax evasion and anti-smuggling regulatory cooperation , as well as specific measures such as studying the establishment of a regulatory cooperation mechanism for cross-border financial innovation. The "30 Financial Measures of Qianhai" proposes to explore an inclusive and prudent regulatory model that is compatible with Hong Kong's financial system, and to improve the cross-border financial risk prevention and control mechanism, specifically including supporting Shenzhen and Hong Kong in establishing a close cross-border financial regulatory cooperation mechanism in the cooperation zone and regular consultation mechanism, support the high-standard construction of China (Shenzhen) Securities Arbitration Center in the cooperation zone, and build an international and diversified cross-border financial dispute resolution mechanism, etc.


  Create a financial environment that facilitates life and employment


  There is no small matter in people's livelihood, and the branches and leaves are always related to love. It is reported that both documents put financial services for people's livelihood in a prominent position. Among them, the "30 Hengqin Financial Measures" mentioned that priority should be given to serving the people's livelihood, and actively creating a livable and business-friendly financial environment in the cooperation zone that is similar to that of Macau, so as to facilitate the life and employment of Macau residents. The "30 Financial Measures of Qianhai" stated that deepening financial cooperation between Shenzhen and Hong Kong, giving priority to financial innovation in the field of serving people's livelihood, and building a financial service system with better quality, more variety and more convenient services for people's livelihood in the Guangdong-Hong Kong-Macao Greater Bay Area.


  Specifically, in order to create a financial environment that facilitates the life and employment of Macao residents, the "30 Hengqin Financial Measures" clearly provide exchange convenience for qualified Macao residents to purchase or sell commercial housing in the cooperation zone; the study allows market players in the cooperation zone to Macau Pataca or RMB for payment; orderly allow Macau Patacas to be used as small payments in the cooperation zone, etc. Among them, orderly allowing patacas to be used as micropayments in cooperation zones is the first nationwide system.


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