A view of the Guangdong-Hong Kong-Macao Greater Bay Area special section at the China International Financial Expo in Guangzhou, South China’s Guangdong Province on Sunday. Photo: IC
Authorities in Shenzhen’s Qianhai, South China’s Guangdong Province, issued a guideline on Monday with detailed measures to support Hong Kong financial sectors exploring the Chinese mainland market and speed up the building of Shenzhen-Hong Kong international financial city in the Qianhai Economic Zone.
This marks the first special policy designed to support the development of the financial industry in Qianhai – a development zone known for opening-up policy experiments – after the central government released a new plan in September to further accelerate the opening-up process in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone.
Observers said that the new guideline will further promote integrated development between the Hong Kong Special Administrative Region (HKSAR) and the Chinese mainland within the Guangdong-Shenzhen-Macao Greater Bay Area (GBA), helping to spur Shenzhen’s financial vigor while further enhancing and cementing Hong Kong’s role as an international financial center.
The new guideline includes preferential policies to boost financial cooperation between Shenzhen and the HKSAR, such as a 2-million-yuan reward for major financial cooperation platforms and basic financial infrastructure in the Guangdong-Shenzhen-Macao Greater Bay Area. There is also a 3-million-yuan aid plan for fintech subsidiaries set up by Hong Kong virtual banks in Qianhai.
Under the guideline, financial institutions that meet the standards for opening entities in the Shenzhen-Hong Kong international financial city in Qianhai could gain fiscal support of up to 3 million yuan, and Hong Kong financial institutions are qualified for 1.2 times the level of support.
The guideline also aims to push forward financial innovations in the Qianhai area. For example, local authorities will arrange a 10-million-yuan annual quota for applying and promoting digital yuan, and institutions that conduct digital yuan business will be awarded 1 million yuan to 3 million yuan if they “settle down” in Qianhai.
Under the national plan released in September, Qianhai is encouraged to conduct experiments in financial reforms like connectivity with Hong Kong’s financial markets, cross-border usage of the yuan, foreign currency usage and green finance cooperation
HKSAR Financial Secretary Paul Chan Mo-po wrote in a blog post in September that the central government’s plan will offer “unlimited” opportunities for the future development of the HKSAR.