(Source: Nanfang Plus APP)
Editor’s Note
This year marks the 40th Anniversary of China’s Reform and Opening Up. After General Secretary Xi Jinping’s inspection in Guangdong this October, the province is now implementing key points from his speeches and devoting itself to furthering the policy of reform and opening up in a comprehensive way.
How to build a modern financial system, to utilize the optimization of the allocation of resources, to further promote industrial innovation, and to build the Guangdong-Hong Kong-Macao Greater Bay Area and the Guangzhou-Shenzhen-Hong Kong Science and Technology Innovation Corridor is an important segment of the policy, aiming to realize high quality development for Guangdong.
A few months ago, reporters from Nanfang Media Group visited Beijing, Shanghai, Hangzhou, Hong Kong among other places, in order to learn from the successes those cities have enjoyed, and find a way to construct a modern financial system in Guangdong.
Planned by Xie Meiqin, Luo Yanjun, Zhangying, Guo Jiaxuan, Chen Yin
Reported by Tang Liuwen, Guo Jiaxuan, Zhang Jun, Tang Zitian, Peng Lin
Edited by Wing, Nan & Simon
(Source: Nanfang Plus APP)
At 4AM on September 23rd, in the lobby of West Kowloon Station in Hong Kong, the passengers on Hong Kong's first high-speed rail line gathered in front of the train to take photos. That day, the Hong Kong section of the Guangzhou-Shenzhen-Hong Kong high-speed railway officially began operation.
A few days later in Guangzhou, Chen Zhiying, a member of the Standing Committee of Guangzhou Municipal Party Committee and executive deputy mayor, said in a briefing that the Guangzhou Municipal Government would explore the establishment of the Guangdong-Hong Kong-Macao Greater Bay Area International Commercial Bank.
This announcement has drawn a great deal of attention. Why is the Guangdong-Hong Kong-Macao Greater Bay Area International Commercial Bank to be established? What can it provide for the development of the Greater Bay Area?
(Source: Nanfang Plus APP)
Will it play the role of "catfish"?
In some experts’ eyes, this to-be-established bank may become a "catfish".
Huang Jianhui, dean of the Minsheng Bank Research Institute, said that only by adding new effective financial supplies can new financial services be generated.
Huang suggested that “the Bank can be established by (other) banks”, that is, banks in the Greater Bay Area can hold shares in this Bank as main investors, and commercial enterprises can participate as a financial investor.
Guo Tianyong, a professor from the School of Finance at the Central University of Finance and Economics, also proposed that private capital and foreign capital can be put into the Guangdong-Hong Kong-Macao Greater Bay Area International Commercial Bank.
Huang Jianhui, dean of the Minsheng Bank Research Institute. (Source: Nanfang Plus APP)
A “sci-tech bank”
Some experts believe that the new Bank should both serve the construction and establishment of the Greater Bay Area and also the“Belt and Road”Initiative, focusing on providing financial support to high-tech enterprises and young entrepreneurs on the mainland from Hong Kong and Macao.
Zhou Tianyong, deputy director of the International Strategy Institute of the Central Party School of the Communist Party of China, proposed that the Guangdong-Hong Kong-Macao Greater Bay Area International Commercial Bank can learn from the business model of the US’ Silicon Valley Bank and act as a professional bank providing services to sci-tech companies.
“When we provide loans, we never consider whether the sci-tech companies provide collateral.” Silicon Valley Bank CEO Greg Baker explained that when deciding whether to provide loans to technology companies, his bank was focusing on factors such as “its venture capital”, etc. and would determine the structure and size of the loan based on these instead.
In fact, this model has already been adopted in the Greater Bay Area - in the first half of this year, the Pudong Silicon Valley Bank was jointly established by the Pudong Development Bank and the Silicon Valley Bank setting up a branch in Shenzhen.
According to Dave Jones, President of Pudong Silicon Valley Bank, technology banks should bring technology enterprises into the science and technology ecosystem as teachers, coaches, and consultants.
(Source: Nanfang Plus APP)
Reallocating financial resources in three places
Guangdong, Hong Kong and Macao have obvious complementary superiorities in finance, sci-tech, industry and other sectors.
Guangdong is in the leading position in terms of economic scale and financial innovation. Its real economy is growing, and demand for financial services is strong. Hong Kong, as an international financial center, is home to global high-quality financial resources and boasts strong scientific research capabilities, and the legal and regulatory system is relatively sound. Macao is a business and trade cooperation platform between China and the Portuguese-speaking countries.
"If the three places can incorporate their respective advantages under a policy framework, that is to say, if they combine the international financial service level, market service level, legal framework and huge market potential, there will surely be a regional advantage in this area,” Song Yuesheng said.
Song also suggested that relying on the arrangement of the Guangdong Free Trade Zone, new policies that can help cross-border capital flow and cross-border mobility of personnel could be piloted.
“If there is success, it can be adopted actoss other parts of the Greater Bay Area.”
