Accelerated Integration of Greater Bay Area Financial Markets Strengthened by Central Bank Policy

On August 13, authorities formally released the Implementation Plan for Financial Support to Advance Comprehensive Cooperation between Guangzhou Nansha and Global Markets, aligned with the Guangdong–Hong Kong–Macao development framework. The plan introduces 88 targeted actions across seven strategic areas, including innovation financing, social welfare-related financial services, specialized instruments, regional market connectivity, cross-border financial exchange, regulatory coordination, and execution mechanisms.

This newly issued plan serves as the operational blueprint for the “Nansha Financial 30 Measures” announced in May. Those initial guidelines, published on May 12 by the People’s Bank of China in collaboration with four other ministries, aim to strengthen financial backing for Nansha and the broader Greater Bay Area.

Fu Xiaochu, Director of the Guangzhou Local Financial Supervision Bureau, outlined three defining aspects of the plan: the transformation of broad policy into actionable steps, the alignment of financial innovation with local industrial priorities—particularly in green, digital, and maritime finance—and the introduction of tailored instruments for technology-driven enterprises, such as sci-tech bonds, notes, and credit enhancement mechanisms.

Efforts to promote financial integration across the Greater Bay Area have intensified in recent years. Prior to Nansha’s initiative, similar frameworks were launched for Hengqin and Qianhai, following the original Greater Bay Area Financial 30 Measures in 2020. Each region has articulated ambitions to build international financial centers, develop niche sectors, and enhance cross-border market access.

While all regional plans address connectivity, specialized services, and welfare-oriented finance, Nansha’s role as a hub for science and innovation places entrepreneurship-focused financial support at the forefront.

Reflecting national policy trends favoring technological progress and deeper openness, the plan proposes hybrid financing models—such as equity-linked loans via dedicated tech branches—alongside pilot programs for cross-border data sharing and enhanced regulatory sandbox collaboration among Guangdong, Hong Kong, and Macao.

This marks Nansha’s third major financial policy initiative at the national level, following the 2014 Financial Reform 15 Measures and the 2022 Pilot Program for High-Level Opening in Cross-Border Trade and Investment. Unlike previous efforts, the current framework emphasizes institutional openness and international alignment through pilot schemes in equity investment, credit access, data exchange, and green finance, with expanded coordination across Hong Kong and Macao.

In the futures and derivatives sector, the plan supports the Guangzhou Futures Exchange in launching joint products with Hong Kong Exchanges and Clearing Limited. It also encourages broader participation by Qualified Foreign Institutional Investors and RMB-designated counterparts, and aims to include existing futures and options under open-access arrangements.

Approved by the China Securities Regulatory Commission in 2021, the Guangzhou Futures Exchange is the first mixed-ownership exchange in China and the second national financial infrastructure in South China after the Shenzhen Stock Exchange. Initially focused on agricultural, metal, and energy commodities, the exchange has pivoted toward green futures, listing industrial silicon, lithium carbonate, and polysilicon. Its cumulative turnover has reached RMB 25 trillion. The exchange is now exploring electricity futures and expanding collaboration with Hong Kong’s exchange.

Zhongzhou Futures, a member of the Guangzhou Futures Exchange, is leveraging policy support to develop new offerings. General Manager Chen Yangfa emphasized that green finance aligns with regional strategy, citing existing products in electricity, carbon emissions, and weather derivatives. He also highlighted the potential to enhance product accessibility and investor engagement across mainland and Hong Kong markets.

Chen noted that cross-border renminbi settlement remains a key challenge due to the need for specialized account structures, anti-money-laundering compliance, and clarity on pricing currency—whether RMB, HKD, or USD—which directly affects fund conversion and movement. Addressing these technical and regulatory hurdles is essential for future product expansion.

The Nansha Financial 30 Measures and the Implementation Plan also outline support for cross-border RMB settlement, including expanded digital RMB use in sectors such as tourism, healthcare, education, shipping, and commodity trading; pilot programs for Wealth Management Connect; promotion of RMB in cross-border investment; and the establishment of offshore RMB investment and lending funds.

To improve settlement efficiency, the plan proposes enhancements to the Free Trade Account system, including refined account rules, expanded pilot bank participation, digital service upgrades, simplified account opening procedures, and streamlined fund review processes.

Hong Guang, a researcher at the Macro-Prudential Management Division of the Guangdong Branch of the People’s Bank of China, explained that foreign-invested firms can deposit capital through standard accounts without needing specialized capital accounts. Offshore institutions may place RMB deposits into term accounts or large-denomination certificates of deposit. He added that future adjustments will further lower entry barriers for high-quality enterprises, reducing account management costs and improving capital utilization.

Between January and April, cross-border RMB settlement between mainland Greater Bay Area entities and Hong Kong/Macao reached RMB 2.49 trillion, a 28.8% increase year-on-year, accounting for 69.4% of total currency settlements. Since 2020, RMB has remained the dominant currency for cross-border transactions in the region.

On August 13, several key agreements were signed covering cross-border finance, climate investment, and ship leasing. The Agricultural Bank of China Nansha Branch launched a digital RMB pilot with Xiangjiang Precious Metals Electronic Materials Co., Ltd.; Bank of China’s Guangdong and Macau branches initiated a cross-border credit sharing program; and Guangzhou Redbird Qihang Venture Capital Partnership and Guangzhou Zhike Automation Technology Co., Ltd. entered an investment collaboration with the Hong Kong University of Science and Technology (Guangzhou).

Fu Yaozhen, President of Agricultural Bank of China Nansha Branch, stated that upcoming efforts will focus on cross-border financing and wealth management. The bank plans to work with Hong Kong and Macao institutions to align credit recognition with market-based credit bureaus and utilize the Free Trade Account system to support financing for cross-border enterprises. In wealth management, the bank aims to build an international asset allocation platform through agent-witness account services, Wealth Management Connect pilots, and family office initiatives.

Fu also noted that for startups and tech firms, the bank will refine its free trade financial products and strengthen support for innovation-driven enterprises. Outbound investors will benefit from integrated services covering settlement, trading, fund transfers, and financing to reduce overseas investment costs. Inbound foreign firms will gain from simplified FDI procedures, easier capital remittance, and improved settlement processes. The bank will also explore new collateral models, including intellectual property and revenue-right pledges, and expand offerings such as tech loans and supply-chain financing.

In terms of financial connectivity, the Nansha Development Zone State-owned Assets Supervision and Administration Commission signed agreements with the China-Africa Friendly Economic and Trade Development Foundation, CITIC Financial Leasing (Ship Leasing), Fosun Insurance Company, and CICC Wealth Management to advance cross-border finance and maritime leasing.

Huang Zhaojin, Executive Director of the China-Africa Friendly Economic and Trade Development Foundation, said the agreement will support the creation of an international business cooperation zone in Nansha. Plans include inviting ten countries to establish cooperation hubs, leveraging Nansha’s smart port infrastructure and 25 direct shipping routes to Africa to promote digital finance, global trade, and logistics partnerships with Africa, the Middle East, and Central Asia.