Deacons
June 22, 2020 - United States of America
Mainland China Briefing: Regulators Issue Opinions on Providing Financial Support for the Development of Greater Bay Area
On 14 May 2020, the People’s Bank of China (PBOC), the China Banking and Insurance Regulatory Commission (CBIRC), the China Securities Regulatory Commission (CSRC) and the State Administration of Foreign Exchange (SAFE) unveiled the Opinions on Providing Financial Support for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area (together the Opinions, available here in Chinese).
The Opinions propose 26 measures to implement the following policy goals:
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to promote cross-border trade and facilitate investment and financing in the Greater Bay Area (GBA);
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to expand the opening-up of the financial industry;
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to enhance the connectivity and integration of financial markets and financial infrastructure;
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to boost the innovation of financial services in the GBA; and
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to prevent cross-border financial risks.
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The Opinions also propose measures specifically focusing on the asset management industry:
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to allow Hong Kong and Macau institutional investors to invest in private equity investment funds and venture investment enterprises (funds) in the mainland areas of the GBA through the Qualified Foreign Limited Partnership (QFLP) regime;
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to promote the trial schemes of Qualified Domestic Limited Partnership (QDLP) and Qualified Domestic Investment Enterprise (QDIE), and support overseas investment by domestic private equity investment funds;
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to support commercial banks to establish financial asset investment companies and wealth management companies in the mainland areas of the GBA with no foreign shareholding limit;
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to support the establishment of foreign-controlled securities companies, fund management companies and futures companies in the mainland areas of the GBA;
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to improve the connection arrangements in financial markets, including Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, and Bond Connect; and
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to support qualified Hong Kong and Macau financial institutions and non-financial enterprises to issue financial bonds, corporate bonds and debt financing instruments in the Mainland.
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The Opinions aim to strengthen financial cooperation between Mainland China, Hong Kong and Macau, enhance the role of the GBA in supporting and leading China’s economic development, and pledge strong financial support for the construction of a dynamic and international bay area and world-class city cluster.
Read full article at: https://www.deacons.com/news-and-insights/publications/regulators-issue-opinions-on-providing-financial-support-for-development-of-greater-bay-area.html