Guangdong promotes the financial industry from big to strong by improving quality and efficiency, seeking openness and preventing risks
2024-08-16
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In 2023, Guangdong's GDP reached 13.57 trillion yuan, accounting for one-tenth of the country, ranking first in the country for 35 consecutive years.
The huge economic volume has led to the booming development of the financial industry. In 2023, the added value of Guangdong's financial industry reached 1.24 trillion yuan, contributing 13.8% to economic growth. 29 securities companies, 36 fund management companies, 23 futures companies, and 4,933 private equity fund management institutions are gathered here.
The capital market is the foundation for Guangdong to build a strong financial province. By the end of May 2024, Guangdong had a total of 875 domestic listed companies, accounting for 16.3% of the country, ranking first in the country. Moreover, Guangdong's listed companies have obvious scientific and technological innovation attributes, outstanding "chain leader" characteristics, and continued to improve their operating performance.
Under the strategic goal of accelerating the construction of a financial power, Guangdong, which has two distinct marks of a major economic province and a major financial province, has a new contemporary connotation in building a financial power. In an exclusive interview with a reporter from Shanghai Securities News, the Guangdong Branch of the People's Bank of China, the Guangdong Financial Regulatory Bureau, and the Guangdong Securities Regulatory Bureau elaborated on the ideas of helping Guangdong build a financial power. In summary, they are: improving the quality and efficiency of serving the real economy; anchoring the new positioning of the Greater Bay Area, deepening the high-level opening of finance; and preventing and resolving financial risks in the jurisdiction.
[Guangdong Provincial Branch of the People's Bank of China: Focus on high-quality development and jointly build an international financial hub in the Greater Bay Area]
In the new journey of building a strong financial nation, the construction of Guangdong into a strong financial province has taken on new connotations.
What are the advantages of Guangdong in building a strong financial province? How to write the Guangdong chapter of building a strong financial country? How will the strong and distinctive financial power of Guangdong help Guangdong's high-quality financial development? In a recent interview with a reporter from Shanghai Securities News, the Guangdong Branch of the People's Bank of China said that Guangdong has many significant characteristics and advantages in building a strong financial province, such as large financial scale, good development trend of financial agglomeration areas, high-quality financial institutions and key financial infrastructure, and leading financial reform and innovation and opening up.
The Guangdong Branch of the People's Bank of China said that it will make good use of Guangdong's financial scale advantages, accurately focus on the main direction of high-quality development, actively transform the structure, improve service quality, and expand new space for financial development. At the same time, it will actively connect with Hong Kong and Macao, promote institutional opening up in the financial field, deepen reforms and innovations in science and technology innovation, green and inclusive finance, create more experience in exploring the path of financial modernization, and strive to write a chapter in Guangdong in building a financial power.
Guangdong has many scenarios and great development space, and is committed to writing five major articles
Guangdong is China's largest economic province, with an active market economy, strong industrial momentum, new business models, and strong demand for finance. The five major areas of science and technology finance, green finance, inclusive finance, pension finance, and digital finance have many scenarios and great development space.
The Guangdong Branch of the People's Bank of China strives to improve the quality and efficiency of financial services for the real economy and do a good job in "five major articles" by improving the policy support system, giving full play to the precise drip-irrigation effect of monetary policy tools, promoting innovation in financial products and services, broadening financing channels, and strengthening policy implementation supervision.
For example, in the area of science and technology finance, the Guangdong Branch of the People's Bank of China guided financial institutions to implement Guangdong's "15 Measures for Science and Technology Finance", make good use of re-loans for technological innovation and technological transformation, and increase support for first-time borrowers of technology-based enterprises. At the same time, it promoted financial institutions to establish and improve a science and technology financial service system, and provide more appropriate financial services for the diversified financing needs of technology-based enterprises throughout their life cycle.
In terms of green finance, the Guangdong Branch of the People's Bank of China has continuously improved the incentive and constraint mechanism of green finance, continuously and efficiently promoted the implementation of carbon emission reduction support tools, and guided Guangdong financial institutions to continuously deepen green credit product innovation and organizational system construction.
In terms of inclusive finance, the Guangdong Branch of the People's Bank of China has promoted financial institutions to implement the "High-quality Development Project for 100 Counties, 1,000 Towns and 10,000 Villages", established and improved a modern rural financial service system, and strengthened the supply of financial services in important areas of social livelihood. It has established a long-term mechanism, improved internal funds transfer pricing, due diligence exemption, performance appraisal and other policy arrangements, and promoted the increase, expansion and price reduction of financing for small and medium-sized enterprises.
Distinctive features: Join hands with Hong Kong and Macao to build an international financial hub in the Greater Bay Area
The positioning of building an international financial hub for the Greater Bay Area is a distinctive feature of Guangdong.
The Guangdong Branch of the People's Bank of China stated that in order to build an international financial hub in the Greater Bay Area, we should coordinate the construction of a strong financial province with the construction of Hong Kong's international financial center and Guangzhou and Shenzhen's regional financial centers. By leveraging the respective advantages of Guangdong, Hong Kong and Macao, we will deepen mutually beneficial financial cooperation, promote the interconnection of financial markets, and form a relationship of coordinated development, complementarity and mutual promotion.
The seeds of openness and connectivity have been watered over the years and are bearing fruit along with the innovation of market mechanisms and policies.
In 2023, the Guangdong Branch of the People's Bank of China and the Guangdong Branch of the State Administration of Foreign Exchange will actively study and implement policy measures to provide financial support for the Greater Bay Area, the Free Trade Zone, and major cooperation platforms such as Hengqin, Qianhai, Nansha, and Hetao, promote financial reform and innovation and opening up to the outside world, carry out cooperation in key areas, and provide strong support for the construction of an international first-class bay area and a world-class urban agglomeration.
At the same time, the Guangdong Branch of the People's Bank of China and the Guangdong Branch of the State Administration of Foreign Exchange have continuously expanded the scope of cross-border use of RMB, focusing on improving the level of trade and investment facilitation. As of the end of March, Guangdong handled facilitation settlement of 240.4 billion yuan for 1,773 enterprises; opened 10,890 FT accounts, and handled 3.36 trillion yuan of fund business.
The Guangdong Branch of the People's Bank of China stated that it will focus on high-quality development, strengthen high-quality financial services, promote high-level financial opening-up, deepen cooperation in key areas, and work with Hong Kong and Macao to jointly build an international financial hub in the Greater Bay Area, helping the Greater Bay Area become a strategic fulcrum of the new development pattern, a demonstration site for high-quality development, and a leader in Chinese-style modernization.
Prevent and resolve financial risks and deepen regional financial reform
Risk prevention and control is the eternal theme of financial work.
The Guangdong Branch of the People's Bank of China insists on seeking progress while maintaining stability, pioneering and innovating, preventing and controlling risks in development, defusing risks through reform, and steadily and prudently promoting risk defusing in key areas. In recent years, it has actively assisted the Guangdong Provincial Party Committee and the Provincial Government in promoting the comprehensive transformation of agricultural cooperatives across the province into rural commercial banks, effectively promoting the stable de-risking of high-risk institutions; insisted on optimizing the financial environment of the real estate industry from both the supply and demand sides, and fully supported the "three major projects" such as the construction of affordable housing; improved the working mechanism of provincial departments, and cooperated with relevant departments to strengthen the monitoring and prevention of local state-owned enterprise bonds and non-standard debt risks.
The Guangdong Branch of the People's Bank of China stated that in the next step, it will implement the decisions and arrangements of the Central Financial Work Conference and the work requirements of the People's Bank of China, focus on comprehensively strengthening supervision and preventing and resolving risks, effectively improve the effectiveness of financial supervision, effectively prevent and resolve financial risks in the jurisdiction, and maintain the bottom line of no systemic financial risks.
In terms of strengthening financial regulatory coordination, the Guangdong Branch of the People's Bank of China will strengthen regulatory coordination and policy collaboration to better serve the development of the real economy, prevent and resolve financial risks, and deepen regional financial reforms.
In terms of continuously promoting risk mitigation in key areas, the Guangdong Branch of the People's Bank of China will prevent and resolve risks in small and medium-sized financial institutions, promote them to enhance their risk resistance and improve their service level to the real economy. It will strengthen cooperation with relevant departments, provide financial support for the stable and healthy development of the real estate market, and prevent the spillover of risks in the real estate market.
[Guangdong Financial Regulatory Bureau: Guiding the financial industry to improve the "four characteristics" and do a good job in "five major articles"]
"The inherent meaning of building a strong financial province is to take the structural reform of the financial supply side as the main line, guide the integrated development of financial resources and local resource endowments, continuously improve the ability and level of financial services for the real economy, take the lead in the country to implement and strengthen the 'five major articles' of finance, and achieve resonance between financial and high-quality economic development." Recently, the Guangdong Regulatory Bureau of the State Financial Supervision and Administration Administration stated in an exclusive interview with a reporter from the Shanghai Securities News.
The province has outstanding advantages in financial strength
Under the general framework of building a strong financial nation, what characteristics and connotations should a strong financial province have?
The Guangdong Financial Regulatory Bureau believes that the functionality and completeness of the regional financial infrastructure, financial system and financial market are at the forefront of the country; the regional financial industry has strongly supported the high-quality development of the local economy and is at the forefront of the country in promoting Chinese-style modernization; the level of regional financial openness and the degree of alignment of financial rules with international practices are at the forefront of the country; ensuring that regional systemic financial risks do not occur, the effectiveness and coordination of the financial regulatory system are at the forefront of the country; the regional financial ecological environment order and the construction of Chinese-style financial culture are at the forefront of the country.
In the view of the Guangdong Financial Regulatory Bureau, Guangdong has three main advantages and foundations for building a strong financial province:
First, Guangdong has outstanding institutional and policy advantages. Since 2020, the People's Bank of China, the State Financial Supervision and Administration Bureau and other departments have introduced a number of measures to build the four pillars of the financial policy system of the "Greater Bay Area + Demonstration Zone + Cooperation Zone", providing strong support for making good use of the great opportunities and great articles of the "one point and two places" in the Greater Bay Area and building a strong financial province.
Secondly, Guangdong has unique economic and industrial advantages. In recent years, under the strategic deployment of insisting on manufacturing as the mainstay, building a province with strong scientific and technological innovation, deeply implementing the "Hundred Million Project", and deepening cooperation between Guangdong, Hong Kong and Macao, Guangdong has continued to cultivate new momentum, improve the efficiency of the modern industrial system, and accelerate the construction of new quality productivity, forming a strong overall industrial competitive advantage and laying a solid economic foundation for the construction of a strong financial province.
Finally, Guangdong has the advantage of a well-developed financial market. The financial industry is a pillar industry in Guangdong. The number of financial institutions of all kinds, deposit and loan scale and other major indicators rank first in the country. In 2023, the added value of Guangdong's financial industry will reach 1.24 trillion yuan, a year-on-year increase of 7.1%, accounting for 9.1% of GDP, and contributing 13.8% to economic growth. In addition, in recent years, Guangdong, Hong Kong and Macao have accelerated the interconnection and interoperability of financial markets such as securities, bonds, funds, and wealth management, and continued to explore more financial fields for trial and error, which will accelerate the formation of an international financial hub in the Guangdong-Hong Kong-Macao Greater Bay Area.
Guiding the financial industry to improve the "four characteristics"
In the process of building a strong financial province, how will Guangdong guide and support the financial industry to do a good job in the "five major articles"?
The Guangdong Financial Regulatory Bureau believes that it should start from four aspects to guide the financial industry to improve the "four characteristics" and do a good job in the "five major articles":
First, we will strengthen coordination between the central and local governments and policies, and improve the directness of financial services to the real economy. For example, in response to the problem of unequal risk and return in the field of science and technology finance, we will further strengthen work linkage, accelerate the study and improvement of provincial science and technology credit risk compensation policies and measures, and improve the risk sharing and compensation mechanism; in response to the problem of information asymmetry between banks and enterprises in the field of inclusive finance, we will promote relevant departments to improve the government information data sharing platform, increase the opening of basic data on the basis of ensuring data security, and guide credit funds to accurately match the financing needs of small and micro enterprises.
Second, we will deepen the structural reform of the financial supply side and improve the adaptability of financial services to the real economy. For example, in the field of science and technology finance, we will support financial institutions to explore and develop exclusive credit products, implement preferential interest rates, and open up green approval processes for scientific and technological innovation activities such as basic and applied basic research, technological breakthroughs, and transformation of scientific and technological achievements under the premise of compliance with laws and regulations, so as to help Guangdong develop new quality productivity.
Third, we will accelerate the digital transformation of financial institutions and improve the efficiency of financial services for the real economy. For example, we will focus on activating the potential of data elements, encourage banking and insurance institutions to actively participate in the market-based allocation of data elements, and accelerate the innovative application of data elements in the financial sector.
Fourth, establish and improve supporting safeguards to enhance the availability of financial services to the real economy. Focus on professional fields such as science and technology, green, and digital, and promote the improvement of supporting measures in related links such as standard identification, transaction circulation, evaluation and accounting, and market system, to provide good guarantees for the comprehensive improvement of financial service efficiency.
Deepening market connectivity
Guangdong is the core engine of the Guangdong-Hong Kong-Macao Greater Bay Area and an important window for financial opening up. With the high level of financial opening up, what else will be in store for us?
The Guangdong Financial Regulatory Bureau stated that it will anchor the Greater Bay Area's new positioning of "one point and two places", deepen financial reforms from a higher starting point, support Hong Kong and Macao to better integrate into the overall national development, and promote the implementation of the Greater Bay Area's national strategy and the construction of an international hub through high-quality financial openness.
First, we will deepen the interconnection between Guangdong and Hong Kong and Macao financial markets, including deepening the implementation of measures to open up the banking and insurance industries, further implementing the optimization policy of "cross-border financial management", accelerating the establishment of the Greater Bay Area Insurance Service Center, and studying and exploring the "cross-border insurance" mechanism, etc.
Second, we will take the lead in exploring more financial pilot initiatives in the Greater Bay Area. For example, we will study and explore pilot products such as critical illness dividend insurance and long-term foreign currency insurance policies to improve the quality and efficiency of the supply of protection products in the Greater Bay Area. We will explore ways to align more financial rules with international high standards in areas such as relaxing merger and acquisition loans.
Third, continue to strengthen cross-border financial regulatory exchanges and cooperation. For example, strengthen regulatory consultations, information sharing and coordination between Guangdong, Hong Kong, Macao and Shenzhen, improve the working mechanism for diversified resolution of financial disputes in the Greater Bay Area, and jointly promote the integrated development of the Greater Bay Area's finances under the premise of controllable risks.
In this process, how to balance the relationship between stabilizing growth and preventing risks? The Guangdong Financial Regulatory Bureau stated that it will integrate financial security into all areas of financial reform and development, balance the relationship between stabilizing growth and preventing risks, and ensure that financial reform and development are carried out in an orderly and steady manner. At the same time, it will accelerate the establishment and improvement of a regional financial regulatory coordination and communication mechanism, strengthen cross-border regulatory linkage and risk monitoring cooperation, and weave a multi-dimensional risk protection network from the aspects of capital flow, risk transmission, and rights protection to maintain financial stability and security in the Greater Bay Area.
[Guangdong Securities Regulatory Bureau: Continuously improve the quality and efficiency of supervision to promote comprehensive and in-depth reform of the capital market]
In recent years, the capital market has continuously improved the quantity and quality of its services to the development of Guangdong's real economy. Standing at a new starting point and based on the actual economic development of Guangdong, the Guangdong Securities Regulatory Bureau stated that it will give full play to the functions and roles of the capital market, continue to enhance the synergy of the capital market, and promote various tasks such as strengthening supervision, preventing risks, and promoting high-quality development in an integrated manner, so as to provide strong support for Guangdong to take the lead in promoting Chinese-style modernization.
Precisely serve key areas such as manufacturing
Guangdong promotes the flow of capital market "live water" to key development areas such as manufacturing and the construction of a province with strong scientific and technological innovation. The Guangdong Securities Regulatory Bureau introduced: First, promote the improvement of the quality of listed companies and serve the "manufacturing industry". Since 2018, Guangdong's manufacturing listed companies have actively strengthened, optimized and expanded through the capital market, and have implemented 2,976 mergers and acquisitions and restructurings with a transaction amount of 948.9 billion yuan; 320.3 billion yuan of equity refinancing and 657.3 billion yuan of bond financing. By the end of April 2024, Guangdong has a total of 620 manufacturing listed companies, accounting for 71% of the province, an increase of 270 from the end of 2017.
Secondly, in order to implement the decision-making and deployment of the Guangdong Provincial Party Committee's "Hundreds of Millions of Projects", the Guangdong Securities Regulatory Bureau supports the relevant provincial departments in issuing policy documents such as the "Implementation Opinions on Financial Support for Comprehensively Promoting Rural Revitalization", and cooperates with the Shanghai, Shenzhen and North Stock Exchanges, Guangdong Equity Exchange Center and other units to strengthen the supply of financial support for the development of the eastern, western and northern regions of Guangdong. In terms of supporting the construction of key platforms, focusing on the three major platforms of Hengqin, Qianhai and Nansha, the Guangdong Securities Regulatory Bureau, together with relevant provincial departments, issued an implementation plan for financial support for the construction of the Guangdong-Hong Kong-Macao Greater Bay Area and related major platforms. Relying on the construction of the Guangzhou Futures Exchange, the Guangdong Securities Regulatory Bureau, together with relevant provincial departments, issued an implementation plan to improve the futures-spot linkage market system and promote the high-quality development of the real economy, helping the Greater Bay Area to build a complete futures industry chain and risk management center.
Finally, in terms of effectively resolving risks in key areas, we will have zero tolerance for illegal and irregular behavior, keep a close eye on illegal and irregular behaviors such as financial fraud by listed companies, fraudulent listings, illegal guarantees, and misappropriation of funds, continue to increase the intensity of on-site inspections, audit enforcement, and administrative penalties, and significantly increase the cost of violations through three-dimensional accountability.
Promote the implementation of the “1+N” policy system in the capital market
To help the local economy develop with high quality, a major development task of Guangdong’s capital market is to further improve its quantity and quality and better play the role of the capital market.
The Guangdong Securities Regulatory Bureau stated that it will thoroughly implement the spirit of the Central Financial Work Conference and the new "Nine National Policies" as well as the work arrangements of the Party Committee of the China Securities Regulatory Commission, with strengthening supervision, preventing risks, and promoting high-quality development as the main line. Focusing on the specific arrangements of the Guangdong Provincial Party Committee's "1310", it will better play the role of the capital market, do a good job in the "five major articles" of finance, and help the development of new quality productivity.
First, we will further promote the implementation of capital market reform policies and serve the high-quality development of Guangdong's economy and society. We will promote the implementation of the "1+N" policy system of the capital market in Guangdong, support the listing and financing of enterprises that meet the requirements of new quality productivity, and guide and support enterprises to coordinate the use of equity and debt financing tools to improve the quality of development.
Second, we must strengthen supervision and law enforcement throughout the entire chain and continuously optimize the market ecological structure. We must continue to improve the quality and efficiency of supervision of listed companies, urge listed companies to improve their internal control and governance systems, enhance their awareness of dividends, and enhance their investment value; strictly crack down on securities violations in accordance with the law, improve the three-dimensional administrative, civil, and criminal accountability system, and severely punish listed companies for major violations such as financial fraud and capital occupation; strictly implement the delisting system, accelerate the formation of a normalized delisting pattern in which all companies that should be delisted are delisted and cleared out in a timely manner, and continuously optimize the structure of listed companies.
Third, implement the "four early" requirements to prevent and resolve risks in key areas. Improve the long-term risk prevention and control mechanism, and achieve "early identification, early warning, early exposure, and early disposal" of various risks; focus on preventing and resolving major risks of listed companies, correct corporate violations as soon as possible, rescue companies with operating difficulties, and accelerate the clearance of major illegal and illegal and zombie shell companies; steadily resolve bond default risks and strengthen follow-up supervision of private real estate companies that have been extended overall.
Source: Shanghai Securities NewsGuangzhou Daily New Flower City Editor: Zhao Xiaoman
