Economic
News relating to
Property and Construction Market -
China plans
new financial services region in GuangDong linked to Hong Kong -
China
is going
to
annouce plan to establish GuangDong Province, together with Hong Kong,
as an influential financial services region within 10 years.
The plan & a series of new policies will be
announced during China
President Hu's visit to HK
this weekend.
Policy to boost Hong Kong
The policy announcement will mainly relate to boosting financial
services, trades,
education, science & technology, tourism, co-operation between HK
and GuangDong Province, which is being planned to become an influential
international financial
region within 10 years.
Particularly, financial services will be the main area of the policy
announcement. This will be in line with the push of
internationalization of RMB and the "Go-abroad" policy - China is
encouraging Chinese enterprises and HK enterprises to look for
opportunities overseas. It also demonstrates that China would
like to rely on HK as the "off-shore" centre to spearhead China's
financial services growth plan.
Main points of "boost"
The
following features in the financial services policy will be announced
to strengthen HK's position as a world financial centre:
- to allow third party (ie. non-HK and non-Chinese enterprise/party) to
settle foreign trade and investment account in RMB in HK
- to release more off-shore RMB (investment/financial) products
- to allow long
term investment in China's capital market from HK
-
to set up joint Shanghai-Shenzhen-Hong Kong stock exchange office stock
exchange transaction funds which can list on all three stock
markets.
- to further facilitate the flow of RMB between China and Hong Kong
The plan for a new financial services
region
To develop GuangDong into a new financial services region, the roles to
be played by Guangzhou and Shenzhen are defined in a new
financial services growth plan.
Guangzhou will mainly develop banking, insurances, and wealth
management.
It is to be responsible for strengthening and allocating
resources for financial market. Shenzhen will mainly develop
multi-layer financial markets and venture capital markets. It
is to be responsible for innovative development of financial services.
Experimental financial hubs
China decides to set up experimental financial centre in Shenzhen
QianHai to test the liberalization of RMB swap in capital deals.
The scope of "financial services innovation" in QianHai will include
the following areas:
1. internationalization of RMB
2. RMB financial services for different business disciplines
3. relaxation of financial control on RMB
4. establishment of RMB based financial market
5. collaboration of HK and Shenzhen financial services sector
Financial services to be developed in Shenzhen QianHai will include:
off-shore RMB lending, RMB funding of trade and investment, long
& medium term bond issues
Apart from Shenzhen QianHai, other experimental centres will be set up
in WanQin and NanSa, also in GuangDong
Province.
Some economists expect that the liberalization of RMB
capital exchange will be completed sooner than 2020.
It is possible that RMB may be freely exchanged by 2015.
Source: HKEJ -
28.6.2012
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