Many billions of Chinese yuan in cross-border loans have enabled Hong Kong and Macao enterprises to develop in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin since the zone was established in September 2021.
The Industrial & Commercial Bank of China (ICBC) Hengqin Branch is soundly meeting RMB liquidity needs of Hong Kong and Macao financial institutions. The branch handled the first RMB account financing business worth 1 billion yuan ($150 million) for ICBC Macau shortly after last September. As of late May, it had processed such financial businesses of over 20 billion yuan ($3 billion) to financial institutions in Hengqin and Macao. Its trading volume with ICBC Hong Kong was recorded at 7 billion yuan ($1 billion), providing it with RMB liquidity support.
ICBC Hengqin Branch has financed 820 million yuan ($126 million) for Hong Kong domestic household appliance enterprises to help them expand financing channels overseas. It has also had a leading role in broadening two-way circulation channels of cross-border RMB, facilitating cross-border financing, and promoting in-depth integration.
In addition, innovative financial products based on the GBA Wealth Management Connect pilot plan, cross-border real estate mortgage registration services, and cross-border mortgage loan business are provided to Hong Kong and Macao residents with more convenient services.
In supporting Hong Kong-funded enterprises in Hengqin, together ICBC Hengqin Branch and ICBC Macau provided a cross-border syndicated loan of 3 billion yuan ($448 million) for Hengqin Novotown, which is invested and developed by Hong Kong-based Lai Sun Group.
Hengqin Financial Island [File photo by Yuan Tianxiao]
Bank of China (BOC)’s Hengqin Branch also facilitates individual cross-border investments for residents of the GBA. Its Cross-border Wealth Management Connect services enable Hong Kong and Macao investors to open "Northbound Scheme" accounts online through the domestic BOC mobile banking app without paying a visit to a service outlet.
Cross-border Wealth Management Connect services, first announced by the State last September, support construction of the GBA, promote financial cooperation between the Chinese mainland, Hong Kong, and Macao, expand cross-border investment channels for Hong Kong and Macao investors in Hengqin, and promote cross-market and diversified allocation of residents' assets in the Cooperation Zone, noted a person in charge at the BOC Hengqin Branch.
The Overall Development Plan for Construction of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin states that modern finance would be a major industry in Hengqin. Banks in the Cooperation Zone have since facilitated development of local emerging industries and diversified capital market with financial aid and versatile services for Hong Kong and Macao residents.
A financial support guideline for development of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), was jointly issued by the People's Bank of China, China Banking & Insurance Regulatory Commission, China Securities Regulatory Commission, and State Administration of Foreign Exchange in April 2020. It supports domestic banks in the GBA in issuing cross-border loans to institutions or projects in Hong Kong and Macao under the framework of macro-prudence and promotes connection of Guangdong, Hong Kong, and Macao financial markets and infrastructure in an orderly manner.