China to step up support to southern Hengqin and Qianhai economic zones

CHINA’S financial regulators said they will increase support to boost the opening-up of the Hengqin and Qianhai economic zones in southern China, to better facilitate cross-border trade and investment.

The regulators rolled out 30 measures to the two economic zones that aim to “further promote China’s financial opening-up and innovation, and to deepen financial cooperation between the Chinese mainland, Hong Kong and Macao,” according to a statement released on the central bank’s website.

Qualified financial institutions in Hong Kong will be encouraged to set up subsidiaries in the Qianhai cooperation zone, a special area in Shenzhen neighbouring the Asian financial hub, to expand their businesses on the mainland.

Overseas institutions, especially those in Hong Kong, will be allowed to set up subsidiaries such as commercial banks, wealth management firms and mutual fund companies in the Qianhai cooperation zone, it said.

Securities and futures companies in Qianhai are also encouraged to replenish capital through cross-border financing such as overseas listings, it said.

The regulators also said they will facilitate cross-border capital flow and credit financing for Macau citizens in the Guangdong-Macau in-depth cooperation zone in Hengqin, a special economic zone in southern China neighbouring Macau.

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The measures said the set up of financial institutions, including securities companies, fund companies, futures companies will be encouraged.

Companies and financial institutions in Hengqin are also encouraged to issue bonds in Macau to raise funds, it said.

The measures were jointly released by China’s central bank, banking regulator, securities regulator, foreign exchange regulator and the government of Guangdong province. REUTERS