P. 6

China’s Greater Bay Area
in 2020: Opening up
the Financial Industry,
Promoting Integration

By Dorcas Wong

China Briefing, Dezan Shira & Associates

On May 14, 2020, the People’s Bank of international financial center) and Shenzhen
China, along with three other central (an emerging global financial powerhouse
authorities, unveiled new guidelines to support home to the Shenzhen Stock Exchange and
the financial reform and opening-up of the some of the world’s leading fintech and
Guangdong-Hong Kong-Macao Greater Bay technology companies).
Area (“GBA”).
However, integration has long been a sticking
The Opin¬ions Con¬cern¬ing Fi¬nan¬cial point as the region uses three different
Sup¬port for the Es¬tab¬lish¬ment of the currencies (the Hong Kong Dollar, Macanese
Guang-dong-Hong Kong-Macao Greater Bay Pataca, and Chinese Yuan) and is governed
Area (“the guidelines”) transcribe a series of under three distinct administrative systems.
26 new measures aimed at liberalizing China’s Policymakers are now addressing this.
controls on foreign exchange and foreign The latest guidelines are some of the most
currency remittance, to boost cross-border important reforms targeting the GBA, since
capital flows in the GBA. early 2019, and lay out a blueprint for the
structural transformation of and deeper
Understanding the renewed focus on the cooperation within the regional financial
Greater Bay Area industry.

The guidelines will encourage more cross- We discuss some of the key policies introduced
border business activities between Hong Kong, by the document, and implications for
Macao, and mainland China to optimize the businesses.
allocation of financial resources in the region,
and to improve its individual efficiency and 26 measures to facilitate financial cooperation
quality over time.
The guiding document lays out a series of 26
As a result, new opportunities now exist measures, that are guided by five policy goals
for businesses operating in the insurance, and supported by the overarching objective of
securities, and wealth management sectors. deepening the financial cooperation between
Additionally, businesses in fintech, blockchain, Hong Kong, Macao, and nine cities in the Pearl
big data, and artificial intelligence (AI) will also River Delta region.
benefit. The government is keen to promote
the use of new technology and business models On a macro-level, the document introduces
to facilitate the growth of emerging industries. measures to promote the offshore use of RMB
Already, the Greater Bay Area (GBA) is one in Hong Kong and Macao, while strengthening
of China’s most important financial hubs – the leading role of Hong Kong and Macao as
it includes Hong Kong (a well-established financial hubs.

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