A glimpse of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in south China's Guangdong Province. (File photo/China News Service)
(ECNS) -- The cross-border renminbi (RMB) innovation pilot will start in Qianhai zone, said an official at a news conference on Thursday.
Qianhai is a special cooperation zone in Shenzhen City, and Hengqin, an island in Zhuhai City, both in southern Guangdong Province. It will build a platform for comprehensively deepening reform and innovation in Guangdong-Hong Kong-Macao Greater Bay Area.
As a key international financial center, Hong Kong enjoys a highly open business atmosphere, a perfect financial infrastructure and an international financial regulation system.
The People’s Bank of China will provide better financial services for the Guangdong-Hong Kong-Macao Greater Bay Area, according to Pan Gongsheng, deputy governor of the bank.
As an international financial center, Hong Kong is home to a lot of international financial institutions, with the RMB liquidity pool having reached 80 billion yuan ($12.4 billion). This will help boost RMB internationalization in the pilot zone.
The Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and bond link established between the Chinese mainland and Hong Kong have provided channels for overseas capital to invest in the bond markets of the Chinese mainland.
Currently, over 70 percent of shares owned by foreign investors were bought via Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. Such cross-boundary investment channels will play a pioneering role in the Qianhai zone.
To support the pilot, local departments will boost cooperation in green finance, financial technology, innovation, and regulation between the mainland and Hong Kong.
Qianhai zone will be developed as a test field to implement the negative list of the financial industry and match international standards.