Better financial support for Zhejiang in realizing common prosperity

A guideline issued by Chinese authorities on Friday called for the implementation of a set of financial initiatives to build Zhejiang province, the nation's private economy hub, into a pilot zone for common prosperity.

According to the guideline, Hangzhou, the provincial capital of Zhejiang, will be established as a development and demonstration base for technology innovation in financial services. Banks in the province are encouraged to set up sci-tech branches and provide sustained financial support to sci-tech and innovative enterprises. They are also encouraged to deepen cooperation with external investment institutions.

Besides, Jiaxing in northern Zhejiang, which borders the nation's financial hub Shanghai, will be encouraged to build itself into a highland for commercialization of science and technological findings in the Yangtze River Delta area, and a hub for sci-tech financial service integration.

The guideline calls for strengthening financial support to advanced manufacturing, setting up a digital financial operation system and further facilitating cross-border investment and financing.

It also calls for providing adequate financial services and financial assistance to help low-income population and small and micro businesses, and to revitalize rural areas, and ensuring equitable access of the public to quality financial resources and services.

Jointly released by People's Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange and Zhejiang Provincial People's Government, the guideline is aimed at putting in place financial systems and mechanisms that are more compatible and commensurate with the development of Zhejiang as a demonstration zone for common prosperity.

In June last year, the Communist Party of China Central Committee and the State Council, China's Cabinet, unveiled a guideline to build Zhejiang into a demonstration zone for common prosperity. Since then, the province has published a series of detailed plans and measures, and endeavors to realize common prosperity by the year 2035, when its per capita GDP and the income of urban and rural residents are expected to be on par with those of the developed countries.

Zhejiang province is home to some of the world's top internet and sci-tech companies, including Alibaba and Geely. The capital city Hangzhou will host the 19th Asian Games in September this year.