The Chinese central bank has provided further details on efforts to use the island of Hengqin in Zhuhai and the Qianhai New District in Shenzhen to drive financial integration with Macau and Hong Kong.
Pan Gongsheng (潘功胜), deputy governor of the People’s Bank of China (PBOC), highlighted the critical role of Hengqin and Qianhai in the ongoing process of financial opening and integration in the Greater Bay Area.
“PBOC will continue to expand financial support for the development of Hengqin and Qianhai, and thoroughly implement the decisions and arrangements of the party central committee and State Council,” said Pan at a press conference on the current state of development of Hengqin and Qianhai held on 9 September.
Pan highlighted a range of measures for driving financial integration in the Greater Bay Area, including:
- PBOC leading the Hong Kong and Macau financial authorities in formulating specialist documents to support bi-regional reform and opening.
- Exploring the establishment of electronic network systems and designing open financial system arrangements in accordance with the strategic stance that Hengqin services Macau, and expediting the integration of Hengqin and Macau. Expediting higher level opening of Hengqin’s financial services for financial institutions in Macau. Achieving integration of financial services, expediting the development of Macau’s unique financial services, increasing the scope and depth of Macau’s financial markets as well as financial influence in Lusophone nations.
- Using Qianhai to strengthen financial cooperation between Hong Kong and Shenzhen, further employing the role of Hong Kong as an international financial centre. Driving higher level opening up of the capital account by focusing on free cross-border flows of capital as a factor of production, and driving the opening and connection of financial services between the two regions.
- Establishing and improving financial risk monitoring, prevention and dissolution systems during the process of expanded opening. Expanding the vigour of monitoring of irregular cross-border flows, strengthening regulatory cooperation with Hong Kong and Macau with regard to money-laundering, terrorist financing and tax evasion. Strengthening cooperation with Hong Kong and Macau regulars to increase the effectiveness of crack downs on cross-border money laundering and illegal financing activity.
Pan said that China would soon launch the Cross-border Wealth Management Connect scheme, as well as the south-bound leg of the Bond Connect scheme, to facilitate investment in Chinese financial markets by offshore investors.