The Guangdong Government promulgated implementation plan of the “Opinions on Financial Support for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area”
On 31 July 2020, the Guangdong Financial Regulatory Bureau introduced the “Implementation Plan for Execution of the Opinions on Financial Support for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area” (Implementation Plan) jointly with the Guangzhou Branch of the People’s Bank of China, Guangdong Banking and Insurance Regulatory Bureau, Guangdong Securities Regulatory Bureau, Shenzhen Central Branch of the People’s Bank of China, Shenzhen Banking and Insurance Regulatory Bureau and Shenzhen Securities Regulatory Bureau for implementing the Opinions.
In the Implementation Plan, the 26 measures in the Opinions are further sub-divided into 80 measures, with specific authorities assigned to take charge of the execution of the 80 measures. We have, according to the five aspects under the Opinions, extracted and summarised below those that are relatively specific and more closely related to the Hong Kong and Macao parties.
- Promoting facilitation of cross-border trade, investment and financing in the GBA, and enhancing the convenience of domestic and foreign exchange between Renminbi and foreign currencies and cross-border circulation of Renminbi
- Further opening up the financial industry, and deepening the financial cooperation between Mainland China and Hong Kong-Macao
- Promoting the diversification of financing channels among Guangdong, Hong Kong and Macao, and facilitating the interconnection between financial markets and financial infrastructure
- Further improving the innovation level of financial services in the GBA
- Practical prevention of cross-border financial risks
The Implementation Plan reflects the positive and prudent attitude of the Guangdong Government in formulating and improving the policies of financial support for the development of the GBA. The 80 measures in the Implementation Plan reiterate the content of the Opinions and the tentative ideas proposed in the Implementation Plan are based on the current status of the GBA and prior experiences. However, the actual implementation of the 80 measures will still need to be further studied by the relevant governmental authorities prior to actual operation.
In addition to the aforementioned, certain parts of the Implementation Plan also target domestic enterprises or certain specific areas. It is suggested that those who are concerned should study the Implementation Plan carefully to better understand the policy trends and take full advantage of the policies. Those who are in the relevant positions may provide their comments on the industry needs or on specific policies through institutions such as chamber of commerce or industry associations to assist the governmental departments to formulate practicable and feasible measures that would achieve the desired results.
Source: Deacons article