Guangzhou on course to become intl financial center

In the lead up to Guangzhou hosting the 14th global annual conference of the International Financial Forum (IFF), Qiu Yitong, the director of the city's financial bureau reveals how the Guangdong capital is building itself into an international financial power.

The IFF, sometimes referred to as the "F20 Summit", is the largest and most influential financial event of its kind in the world, and Guangzhou will be hosting its first ever public session, with all previous events having been held behind closed doors.

Qiu said he expects the turnout from Nov 17 to 19 to be really good with around 200 domestic and foreign guests and 800 representatives from financial institutions as well as renowned scholars and experts in economics and finance expected to attend.

The main topic for discussion at the IFF this year will be the development of Greater Bay Area. Guangzhou will also take the opportunity to inform the attendees of the city's rapid financial growth in the hope of attracting financial cooperation and enhancing its global appeal on the financial market.

"Guangzhou has taken steps to develop from a regional financial center to an international financial center," Qiu said, adding that he hopes the city will grow into an international financial resources allocation center in the near future.  

Guangzhou has long been at the heart of China's growth, said Qiu, thanks in part to its location and more recently because of the part it plays in the Guangdong-Hong Kong-Macao Greater Bay Area.

Delegates attend the F20 Summit for the International Financial Forum 2017 held in Guangzhou from Nov 17 to 19. [Photo/www.ce.cn] 

The favorable location no doubt led to Guangzhou developing robust industry and commerce, which is very important in terms of finance. Compared with the other cities, Qiu said that Guangzhou has strong industrial foundation and complete industrial system, which offers support to the development of finance. In the newly released 2017 city's business environment index, Guangzhou ranked first. "A good business environment offers appeal for resource allocation," Qiu said.  

Currently, Guangzhou has five regional financial transaction platforms for equity transactions, carbon emissions permit trading, financial asset transaction, commodity liquidation and shipping exchange. It is this modern financial system that will prove to be a great asset in the city becoming an international finance center.

"When all is ready, the opportunity for Guangzhou's financial globalization presents itself," Qiu said. "Opportunity lies in that Guangzhou's status has changed from a national central city to an important national central city, signifying an improvement of the city's strategic position in the nation."

As well as having more pilot programs than anywhere else in China, Guangzhou's Nansha district is also a region with the biggest area in the Guangdong, Hong Kong and Macao free trade zone, which allows for a platform for international communication and cooperation.

Guangzhou has four pilot sites including the Pearl River Delta financial reform and innovation pilot site, Guangdong-Hong Kong-Macao-Taiwan financial cooperation and exploration of financial reform and innovation site, the Nansha free trade zone and the green finance reform and innovation pilot site.

"Our country has put so many state-level pilot programs in Guangzhou, which means we have more mechanisms and platforms to communicate with others globally." Qiu said.

He added that Guangzhou has quickly improved its international financial influence this year, notably entering the Global Financial Centers Index in March. In the newly released figures after six months, the city's global ranking has gone up from the 37th to the 32nd.

"Guangzhou will strengthen the cooperation with financial institutions and facilitate the setting up of financial institutions abroad as well as in China," Qiu said. "This means Guangzhou will support companies in acquiring overseas financial institutions on top of financial policies to attract overseas financial institutions."

Looking ahead, next year Guangzhou will utilize its pilot free trade zone, the Belt and Road Initiative and Guangdong-Hong Kong-Macao Greater Bay Area development to improve its financial environment to attract and retain business. By focusing on setting up financial institutions at home and abroad, pairing systems, and connection of markets, the financial industry is set to expand.

Qiu said that Guangzhou will further deepen foreign exchange and cooperation, push forward financial reform and innovation and provide strong financial support for the development of an international shipping center, logistics center and trade center, pushing Guangzhou closer to becoming an international financial center.

The annual meeting of the IFF is sponsored by Guangzhou municipal government. It is organized by Guangzhou Financial Bureau, Management Committee in Nansha Development Zone and International Financial Forum (Guangzhou). The theme of the meeting is "Greater Bay Area Development: New Drive, New Growth, New Order". A series of events will be held including member meetings, round-tables conferences, welcome dinner, opening ceremony, press conference, Guangzhou night and parallel sessions.