The five departments of the central bank issued the "30 Measures for Nansha Finance", with four key words identifying a new round of development opportunities for Nansha's financial industry.

The Guangzhou Nansha Free Trade Zone (FTZ) is once again benefiting from favorable policies as it marks its 10th anniversary.

On May 12, the People's Bank of China (PBOC), the National Financial Regulatory Administration (NFRA), the China Securities Regulatory Commission (CSRC), the State Administration of Foreign Exchange (SAFE), and the People's Government of Guangdong Province jointly issued the "Opinions on Financial Support for Deepening Comprehensive Cooperation between Guangzhou Nansha and the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) Facing the World" (hereinafter referred to as the "30 Measures for Nansha Finance").

Centering on aspects such as financial market interconnection, cross-border financial innovation and exchanges, and the improvement of financial regulatory mechanisms, the PBOC and the other four departments proposed six key tasks and 30 specific measures.

The 30 Measures for Nansha Finance also require that, by increasing financial support for Nansha's construction, the role of Nansha as a driving force for the high-quality development of the GBA should be further strengthened, transforming Nansha into a pilot demonstration window for China's financial sector opening up to the outside world, a carrier zone for financial innovation functions, and an important node in the international financial hub of the GBA.

Since its establishment in 2015, the Nansha FTZ has, over the past decade, focused on institutional innovation and actively promoted reforms and innovations in various fields such as trade, shipping, investment, finance, and technology. Amidst the new round of development opportunities under the strategy to upgrade the FTZ, the Nansha FTZ is once again reaping policy dividends. From the perspective of key words, the six major financial tasks can be summarized by innovation, characteristics, openness (including interconnection), and supervision.

Key Word 1: The term "innovation" is mentioned 19 times, running through the five key tasks.

In the full text of the "30 Measures for Nansha Finance," the term "innovation" is mentioned 19 times, running through the five key tasks, highlighting its significance.

Innovating financial support for industrial development ranks first. The "30 Measures for Nansha Finance" requires the improvement of financial services for innovation and entrepreneurship, supporting the construction of a cooperation base for technological innovation industries, including supporting the development of technological innovation industries, high-end manufacturing industries, digital industries, marine industries, and future-oriented industries, as well as supporting youth innovation and entrepreneurship.

In the field of social and people's livelihoods, the "30 Measures for Nansha Finance" calls for the steady promotion of innovative applications of the digital yuan and encourages financial institutions to participate in the construction of the multilateral central bank digital currency bridge.

In terms of serving characteristic financial services, this includes innovating green financial services that support low-carbon development. It encourages the Guangzhou Futures Exchange (GFEX) to actively explore power futures and refine and deepen the new energy futures product system. It also calls for strengthening the construction of enterprise carbon accounts and carbon accounting capability mechanisms, and supporting financial institutions in providing differentiated financial services based on enterprise carbon accounts.

The "30 Measures for Nansha Finance" also calls for accelerating the development of shipping insurance, innovating shipping insurance products, and serving the construction of the GBA; innovating and developing international leasing and factoring businesses, encouraging Nansha to increase policy support, and supporting the development of leasing in areas such as aircraft, ships, and large-scale equipment, thereby forming a leasing industry hub with international competitiveness.

Innovation is also reflected in opening up to the outside world. The "30 Measures for Nansha Finance" call for promoting innovation in cross-border RMB business and facilitating RMB settlement for trade and investment at a higher level.

In terms of regulatory innovation, it is necessary to explore innovation and cooperation in financial supervision, establish an innovative financial supervision mechanism tailored to the development of Nansha, and ensure that risk prevention and control align with financial reform and innovation. Efforts should be made to vigorously develop regulatory technology for financial supervision, enhancing the uniformity, professionalism, and penetrability of financial technology supervision.

Key Word 2: Opening Up, Multiple Asset Management Licenses Expected to be Liberated

As the geographical and geometric center of the Guangdong-Hong Kong-Macao Greater Bay Area, Nansha plays a pivotal role in advancing the interconnection and opening up of the financial markets in the region. The "30 Measures for Nansha Finance" also focus on this aspect, proposing more pilot initiatives.

The "30 Measures for Nansha Finance" propose exploring capital settlement policies suitable for the construction and development of the Guangdong-Hong Kong-Macao Greater Bay Area, establishing trading rules for futures and spot markets that facilitate internal and external linkages, formulating trading rules that facilitate cross-border insurance business, and establishing institutional arrangements that facilitate cross-border equity investment business.

In the "30 Measures for Nansha Finance," regulatory authorities also signaled support for issuing new licenses to financial and asset management institutions such as banks, public funds, securities firms, and futures companies, which is one of the highlights of opening up to the outside world.

Specifically, firstly, accelerate the construction of the Cross-border Asset Management Center in the Guangdong-Hong Kong-Macao Greater Bay Area (Guangzhou Nansha). Support eligible high-quality securities firms in obtaining public fund qualifications through new establishments or mergers and acquisitions. Vigorously develop the public fund investment advisory business. Encourage multinational corporations to establish headquarters-type institutions such as global or regional fund management centers in Nansha. Steadily carry out pilot programs for the "Cross-border Wealth Management Connect" business.

Secondly, expand the opening up of the financial sector to the outside world. Actively study and expedite the establishment of an international commercial bank in the Guangdong-Hong Kong-Macao Greater Bay Area. Actively introduce diversified investment institutions such as sovereign wealth funds, family offices, and venture capital firms. Support eligible Hong Kong and Macao investors in applying to establish securities firms and fund companies in accordance with the law, and participate in or hold shares in domestic futures companies. Build high-standard platforms such as the Nansha International Financial Island, the Mingzhu Financial Innovation Cluster, and the Futures Industrial Park to provide space for cross-border operations of Hong Kong and Macao financial institutions.

In addition, in terms of building a high-level gateway to the outside world, the "30 Measures for Nansha Finance" propose promoting innovation in cross-border RMB business, improving the management mechanism for cross-border trade and investment and financing, accelerating the construction of a comprehensive service base for the joint construction of the "Belt and Road Initiative," establishing a new platform for international exchanges in the financial sector, and exploring institutional opening up in the financial sector.

Key Word 3: Developing characteristic financial services and improving the modern financial industry

Characteristic financial services account for five of the 30 measures outlined in the "30 Measures for Nansha Finance". In addition to accelerating the construction of the cross-border asset management center in the Guangdong-Hong Kong-Macao Greater Bay Area (Nansha, Guangzhou), it also proposes new ideas for green finance, digital finance, shipping finance, and international leasing and factoring businesses.

In terms of specific measures, for the green finance business that innovatively serves low-carbon development, the Guangzhou Futures Exchange (GFEX) is encouraged to actively explore power futures and refine and deepen the new energy futures product system. Strengthen the construction of corporate carbon account and carbon accounting capability mechanisms, and support financial institutions in providing differentiated financial services based on corporate carbon accounts. Promote sustainable information disclosure by enterprises and financial institutions in accordance with the latest standards. Support the development of green buildings. Encourage qualified enterprises to issue green and sustainable bonds in Hong Kong and Macao.

In developing digital finance businesses, the law supports the development of generative AI large models and their applications in the financial sector, actively carrying out intelligent financial services such as intelligent credit, intelligent investment R&D, and intelligent risk control. Establish a think tank for digital finance development research, and support enterprises and financial institutions in conducting cross-border cooperation on digital finance projects.

In developing shipping finance businesses that serve the construction of an international shipping hub, guide and encourage shipping enterprises to use RMB for pricing and settlement of international ocean freight rates. Accelerate the development of shipping insurance, innovate shipping insurance products, and serve the construction of the Guangdong-Hong Kong-Macao Greater Bay Area. Relying on existing trading venues, collaborate with Hong Kong and Macao to carry out shipping transactions, and support financial institutions in providing efficient and convenient financial services such as capital settlement, custody, and financing for shipping enterprises.

Finally, in innovating and developing international leasing and factoring businesses, support qualified commercial factoring companies in exploring and developing international factoring businesses in compliance with laws and regulations. In addition, encourage Nansha to increase policy support for the development of leasing in areas such as aircraft, ships, and large equipment, forming a leasing industry hub with international competitiveness.

Key Word 4: Regulation cannot be absent

While pursuing innovative development, regulation cannot be absent. The 30 Measures for Nansha Finance also put forward requirements in four aspects: financial regulatory orientation, innovative cooperation, risk prevention, and legal safeguards.

The "30 Measures for Nansha Finance" emphasize the importance of improving the financial regulatory mechanism and make comprehensive requirements, from comprehensively strengthening financial regulation, exploring innovation and cooperation in financial regulation, strengthening financial risk prevention, to strengthening legal safeguards for finance.

Adhere to the principle that whoever oversees an industry must also manage its risks. The "30 Measures for Nansha Finance" point out that, firstly, financial regulation must be comprehensively strengthened, with enhanced coordination between central and local regulators. For local financial organizations, institutional, behavioral, functional, penetrating, and continuous supervision must be implemented, adhering to the principle of regulating both legal and illegal activities to ensure that there are no gaps, blind spots, or exceptions in financial regulation.

Second, explore innovation and cooperation in financial supervision. Establish an innovative financial supervision mechanism tailored to the development of Nansha to ensure that risk prevention and control align with financial reform and innovation. Vigorously develop financial supervision technology to enhance the uniformity, professionalism, and penetrability of financial technology supervision.

Third, strengthen financial risk prevention. Strengthen monitoring of cross-border capital movements in Nansha, enhance financial risk assessment and risk prevention and control in key areas, and improve capabilities in risk monitoring, early warning, and resolution, so as to promote early detection, correction, and resolution of financial risks.

Fourth, strengthen the legal protection of finance. Deepen collaboration between financial supervision and the judiciary, and improve the coordination and linkage mechanism. Establish a platform for resolving foreign-related and Hong Kong- and Macao-related financial disputes in the Guangdong-Hong Kong-Macao Greater Bay Area, and build an internationalized and diversified cross-border financial dispute resolution mechanism. Protect the legitimate rights and interests of all types of business entities equally in accordance with the law, and continuously contribute to optimizing a legal business environment.